The Real Deal Miami

New Jersey investor pays $14M for affordable housing complex in Cutler Bay

American Federated invested about $1M into complex before selling
November 02, 2016 09:45AM

Cutlerwood Apartments (Inset: broker Tal Frydman)

Cutlerwood Apartments (Inset: broker Tal Frydman)

A company tied to New Jersey-based Asden Investment Properties paid $14 million for an affordable housing complex in Cutler Bay. 

American Federated Title Coporation sold the 5-acre, 161-unit apartment community for about $87,000 per unit and $134 per square foot, according to Berkadia. It’s located at 10960 Caribbean Boulevard.

Berkadia listed the eight-building property on the market without an asking price in February along with two other complexes in South Florida, the Palm Gardens in Hollywood and Carib Villas in south Miami-Dade.

American Federated invested about $1 million into the Cutlerwood Apartments, renovated about half of the units with new tile floors, kitchen cabinets, countertops and appliances, marketing materials show. The property was developed between 1963 and 1966, and has studios, one-bedroom and two-bedroom apartments with balconies or patios. It’s 98 percent occupied, according to a release.

Asden financed the deal with a six-year, $11.35 million loan, according to the release. Berkadia’s Tal Frydman, senior director, and directors Fernando Polanco and Yoav Yuhjtman brokered the sale, while Mitch Sinberg and Matt Robbins arranged the financing.

The U.S. Department of Housing and Urban Development (HUD) provides Section 8 rental subsidies to Cutlerwood, Berkadia said.

The demand for affordable housing outweighs the supply across the country and especially in South Florida. The Real Deal took a look at barriers to affordable housing development in its fall 2016 issue, including tax credits and workforce housing. – Katherine Kallergis