Crescent Heights lists 149-unit bulk condo in Sunrise

Crescent Heights paid about $209,000 per unit at Tao in 2011

May.May 02, 2016 12:00 PM

Crescent Heights is looking to sell a bulk condo portfolio it owns at Tao in Sunrise, a lakefront luxury condominium development. 

The real estate firm is listing the 149 units it owns at the two-tower, 396-unit condo project at 2681 Flamingo Road, with bids due by June 8, listing brokers Fernando Polanco and Tal Frydman told The Real Deal.

Polanco, Frydman and Yoav Yuhjtman of Berkadia Real Estate Advisors put the portfolio on the market, unpriced, on Thursday. Crescent Heights, a national development, investment and property management company with a regional office in Miami, purchased about 240 Tao units in 2011 and has sold individual units since then.

The bulk listing means the company will sell them at up to a 30 percent discount, Polanco and Frydman told TRD. They include 35 one-bedroom units, 69 two-bedroom units and 45 three-bedroom units – all totaling 197,397 square feet of residential space with an average unit size of 1,325 square feet.

On average, condos at Tao sell for $340,000 to $350,000 per unit, which would mean that including the discount, the units could sell for more than $35 million. On a unit-by-unit basis, it could sell for more than $50 million.

Crescent Heights bought the 240 units in mid-2011 for $50 million from Starwood Capital Group, paying about $209,000 per unit.

The units have a projected net operating income of more than $1.67 million for the first year, according to marketing materials. The Sunrise submarket is seeing an uptick in development, including Metropica, a 65-acre, mixed-use community. When Metropica is completed, it will include eight residential towers with 1,900 units, 400,000 square feet of retail, 650,000 square feet of office space, and landscaped parks. Also in Sunrise, American Express is building its regional headquarters, a 400,000-square-foot corporate office.

Tao, which sits on a 6.7-acre site, was built in 2009. The 26-story towers are near Sawgrass Mills. Amenities include a lagoon-style pool, tennis court, playground, putting green, fitness center, sauna and Jacuzzi.

Crescent Heights, led by managing principal Russell Galbut, is also developing a number of projects in Miami Beach. The developer recently closed on a $34 million mortgage for its Baptist Health outpatient and medical facility at 709 Alton Road.

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