Canadian investors trade North Miami apartment portfolio for $18.2M

Sellers bought when Canadian currency was strong, now selling with favorable exchange rate

TRD MIAMI /
Sep.September 02, 2016 11:15 AM

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

Related Articles

arrow_forward_ios
From left: Stuart Elliott, Jerome Hollo, Michael Shvo, Laurent Morali and Lissette Calderon

South Florida developers riff on the shift from condos to rentals: TRD Miami Showcase & Forum

Daily Digest Miami

Commissioners seek new plans for Melreese, Virgin Trains Aventura stop would have low ridership: Daily digest

former Rucks Park site in North Miami and Udonis Haslem (Credit: Google Maps and Getty Images)

Miami Heat’s Udonis Haslem takes a shot at affordable housing

North Miami approves mixed-use senior apartment development

The Mile, Robert Given and Troy Ballard

Greystar looks to sell luxury rental building The Mile near Coral Gables

Grant Cardone and 10X Living at Sawgrass

Motivational speaker Grant Cardone raises $50M for multifamily fund via crowdfunding

Rent reform is propelling a new wave of New York and California investors to Miami (Credit: iStock)

Rent reform in New York, California propels new wave of multifamily investors to Miami

Clockwise from left: 401 Southwest 17th Avenue, Alfonso Jaramillo, and Andros Sarduy 

Beraja family picks up Little Havana apartments

arrow_forward_ios