Swedish firm buys Related’s newly built Davie apartments for $59M

The Town University Luxury Apartments
The Town University Luxury Apartments

UPDATED December 27 4:16 p.m.:Swedish property firm Contentus AB has officially made landfall in South Florida.

The family-owned company just bought a newly finished apartment complex in Davie, developed and sold by the Related Group, for $59 million. Contentus’ purchase breaks down to about $254,310 per unit.

Broward County records show an affiliate of Contentus now owns the Town University Luxury Apartments at 5500 South University Drive. The garden-style complex houses 232 units, which boast a starting rent of $1,620 for a one-bedroom apartment.

The deal amounts to a large bet on the South Florida multifamily market by Contentus, which mostly owns residential and retail properties in its hometown of Ystad, as well as in the nearby city Malmö.

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Contentus is not alone: institutional investors have made South Florida rental properties one of the hottest commodities this year, snapping up freshly constructed complexes and older properties alike. By The Real Deal’s count, more than $4 billion worth of multifamily deals were inked during 2016’s first half alone.

Related is one such company cashing in on that demand. Jorge Perez, the firm’s chairman and CEO, said at a recent panel that Related would focus more on rental projects while the local condo markets cools.

Related bought the 11 acres where it built Town University two years ago for $6 million and quickly starting construction with a $27 million loan from Regions Bank. The project’s construction bill was $23.45 million, according to a payment bond filed with the county by general contractor Carr Builders.

Contentus financed its purchase with a $35.4 million loan from the Metropolitan Life Insurance Company, county records show. Jason Vaupen and Rich Bezold of law firm Akerman represented the Swedish firm as attorneys for this deal.