The private capital group known as 1370 S. Ocean LLC has purchased 54 townhomes in the Orchid Grove neighborhood of Pompano Beach for $11 million, CBRE, who represented the seller, Orchid Grove Holdings, announced. The sale works out to roughly $203,704 per unit or $94 per square foot for the residential buildings located at 649 South Cypress Road.
Calum Weaver, director of operations for CBRE’s Private Capital Group, noted that while there were several big ticket multi-family sales in 2012, the lower-end market, between $1 and $15 million, has remained very robust.
“Investors are drawn in by South Florida’s impressive more than 95 percent occupancy rates and record-high rental rates,” Weaver said. “In addition, new lending sources opened up in the last 18 months to provide attractive new debt solutions in the $1 to $10 million deal size. Terms vary based on the buyer, but it’s common to see around 75 percent leverage at a low 4 percent interest rate.”
At the start of the month, CBRE also closed multi-family deals at 7609-7617 Carlyle Avenue, 7635 Dickens Avenue, and 531 76 Street, representing 31 units at $106,710 per unit. --Christopher Cameron