Canadian investors trade North Miami apartment portfolio for $18.2M
Canada’s Econo-Malls Management Corp. just cashed out its chips on a North Miami apartment portfolio, selling five buildings in the city for $18.2 million.
Marcus & Millichap, which marketed the assemblage for Econo-Malls, announced the deal Friday.
The sale includes 233 apartments housed in five buildings constructed in the 1960s and ‘70s, according to county records.
Felipe Echarte of Marcus & Millichap told The Real Deal that monthly rents average $830 per unit across the portfolio, whereas similar buildings in the neighborhood ask closer to $925. With an occupancy rate hovering at about 95 percent, the assemblage has a cap rate of just under 7 percent. His colleagues Still Hunter and Evan Kristol also worked on the sale.
Taking advantage of what was then a strong Canadian loonie against the dollar, Echarte said, Econo-Malls swooped into North Miami three years ago and assembled the buildings for a total of $14.65 million, or about $62,875 per unit.
The Canadian investment firm then renovated almost all of the 233 apartments with granite countertops, new tile flooring and appliances.
Now, with the dollar strong against the loonie, Econo-Malls is taking $78,111 per unit back home to Canada, Echarte said.
Marcus & Millichap declined to name the buyer, but Echerte said the new ownership is planning capital improvements to the portfolio and will likely raise rents. The sale has not yet been recorded in public records, either.
Multifamily properties are hot commodities in South Florida this year, with more than $4 billion worth of rental buildings trading hands in the first half of 2016 alone.
Here’s a complete list of the properties
- Royal Courtyard: 13020 Northeast 6th Avenue
- Royal Village: 13055 Northeast 6th Avenue
- Royal Place: 14050 Northeast 6th Avenue
- Royal Vista: 400 Northeast 137th Street
- Royal Pointe: 1525 Northeast 125th Street