Investor picks up two South Beach apartment buildings for $6.8M

Miami /
May.May 06, 2016 08:45 AM

An investor just paid $6.8 million for two 1950s-era South Beach apartment buildings with plans to renovate the units and lease them out at market rates.

The deal was announced Thursday by listing brokerage Marcus & Millichap, which represented seller Nick Molina. It includes the low-rise apartment buildings at 1035 9th Street and 1044 Pennsylvania Avenue, which have 22 and 16 units, respectively.

Molina purchased the buildings through two separate deals in April 2013 for a combined $4.425 million, according to county records. He financed those deals with a pair of mortgages from the seller totalling $2.94 million.

“The properties had unfavorable debt that needed to be assumed and we were able to overcome this challenge by identifying a buyer who understood the future potential of the assets,” Felipe Echarte of Marcus & Millichap said in the sales announcement. “[The buyer plans] to renovate the units and raise the rents to market levels to increase cash flow and take advantage of continued appreciation in the market.”

Evan Kristol and Harrison Rein of Marcus & Millichap also represented the seller, while Mendel Fellig of Judith Rosen & Associates brought the buyer.

The two buildings are garden-style apartments mostly composed of studios — 28 overall — with a handful of one-bedroom, one-bathroom residences.

Rein told The Real Deal that average rents at the 9th Street building were $1,117 per month, with the Pennsylvania Avenue property fetching a very similar monthly rate of $1,106. Depending on the extent of the renovation, he said, a one-bedroom unit along Pennsylvania Avenue could easily command $1,650 a month at market rate.

Because the sale has not yet been recorded in county records, the buyer is unknown.

Multifamily properties are becoming one of South Florida’s most hotly traded asset types. Last year, $1.2 billion worth of rental properties were traded between developers and investors in the region, with experts citing rising rental rates and demand from millennials as drivers behind the market surge.


Related Articles

arrow_forward_ios
A unit in Continuum South Beach was the top sale last week (Luxhunters for ONE Sotheby’s International Realty)
Tech entrepreneur’s purchase of Continuum unit leads Miami-Dade weekly condo sales
Tech entrepreneur’s purchase of Continuum unit leads Miami-Dade weekly condo sales
Tech entrepreneur pays $8M for Continuum South Beach condo
Tech entrepreneur pays $8M for Continuum South Beach condo
Tech entrepreneur pays $8M for Continuum South Beach condo
AIMCO founder Terry Considine and a rendering of the Grand Flamingo tower
Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
(Facebook via Hotel Astor Miami Beach)
Shuttered Hotel Astor in Miami Beach gets a new owner
Shuttered Hotel Astor in Miami Beach gets a new owner
The 5-to-0 vote last week will prevent property owners in a large chunk of residential South-of-Fifth from converting their buildings into apartment hotels (iStock)
Miami Beach bans new apartment hotels in parts of South-of-Fifth — for now
Miami Beach bans new apartment hotels in parts of South-of-Fifth — for now
Witkoff CEO Steven Witkoff with the restaurant property (Witkoff, Crexi)
Witkoff buys South Beach restaurant building off Lincoln Road for $15M
Witkoff buys South Beach restaurant building off Lincoln Road for $15M
Alex Furrer, Setai Miami Beach and owners Joe, Ralph and Avi Nakash. (Miami Beach Chamber of Commerce, iStock, Setai)
Scandal at Setai Miami Beach: General manager defamed, harassed resident following affair, lawsuit alleges
Scandal at Setai Miami Beach: General manager defamed, harassed resident following affair, lawsuit alleges
Ronny Finvarb with the proposed hotel (GEK Architecture)
Sunset Harbour’s new zoning district bans Ronny Finvarb’s planned hotel, allows taller offices
Sunset Harbour’s new zoning district bans Ronny Finvarb’s planned hotel, allows taller offices
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...