Foreign capital driving growth in Miami multi-family sector: report

Foreign capital, particularly from Latin America, is driving growth in multi-family acquisitions in Miami, according to a fourth-quarter apartment sector report from Marcus & Millichap. While the local economy’s growth remains middling, “expanding access to acquisition debt at low interest rates and rising rents are sustaining investor demand,” according to the report. Properties in areas like Miami Beach are changing hands at first-year returns of less than 5 percent, while those in Coral Gables are trading in the low-6 percent range. “Miami-Dade also continues to cement its stature as a safe haven for Latin American and European capital, and many foreign buyers are stepping up multi-family acquisitions, frequently in all-cash deals,” the report said. Apartment vacancy is projected to drop by 70 basis points in Miami this year to 4 percent. — Alexander Britell