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Related, partners sell 29 Wyn apartment project in Miami for $135M
Sale of recently completed pair of buildings equates to $544K per unit
Berkshire Residential Investments bought the recently completed 29 Wyn apartment complex in Miami’s Wynwood neighborhood for $135 million.
The Pérez family’s Related Group and Bob Zangrillo’s Dragon Global Management sold the pair of buildings with 248 units, combined, at 2918 and 2828 Northwest First Avenue to Boston-based Berkshire Residential, according to records and real estate database Vizzda.
The deal breaks down to $544,355 per apartment.
Berkshire Residential secured a $79.5 million loan for the purchase by assuming an existing $69 million loan and increasing it by $10.5 million, Vizzda records show. The borrower transferred the existing loan from lender Cerberus Capital Management to Wells Fargo, which also issued the new mortgage.
Coconut Grove-based Related bought the roughly 1.3-acre development site in 2016 for $12 million, records show. According to Zangrillo, Dragon Global and Tony Cho’s Metro 1 sold the development site to Related but kept a half-stake in the property. Related and Dragon Global bought out Metro 1’s interest roughly two years ago, Cho confirmed to The Real Deal.
Carlos Rosso, a former executive at Related’s condo division who started his own firm, also was a project investor and seller, he told TRD.
Completed this year, 29 Wyn consists of a 12-story building and an eight-story building separated by Northwest First Avenue. It includes 28,400 square feet of ground-floor commercial space.
The complex offers studios with monthly rents starting at $2,420; one-bedroom apartments starting at $2,700; two-bedroom apartments starting at $3,494; and three-bedroom apartments for $6,282, according to 29 Wyn’s website.
Led by David Olney, Berkshire Residential is a real estate investment firm with roughly $27 billion in assets under management, including roughly 433,000 residential units, its website shows.
The firm paid $202.5 million for The Sophia at Abacoa apartment complex at 863 University Boulevard in Jupiter last year.
South Florida’s multifamily market is coming off a leasing frenzy caused by the influx of out-of-state residents during the pandemic. The demand pushed up rents to record heights, prompting real estate players to start new projects and scoop up apartment properties.
Now, with many new projects completed and less residential migration, the market is cooling. Across the tri-county region, occupancy dropped by 2 percentage points to 95 percent in the second quarter, year-over-year, according to Berkadia. Landlords responded by giving some concessions, including in coveted neighborhoods such as Wynwood.
29 Wyn’s website is advertising a month’s free rent.
Expensive borrowing costs also slowed the sales party. Buyers still in the game tend to be those with closed discretionary funds that allow them to purchase in cash. Some that take out financing often assume existing loans or turn to insurance agencies or Freddie Mac and Fannie Mae for more favorable terms.
Last month, Ashcroft Capital bought the Elliot Cocoplum apartment complex at 4142 Cocoplum Circle in Coconut Creek for $70.4 million. Ashcroft assumed a $62.2 million Freddie Mac loan from the seller, Advenir.