The Real Deal Miami

Mast Capital, Rockpoint sell Key West apartments to Priderock for $56.8M

Price represents a 44% gain in less than three years, before renovation expenses

West Isle Club Apartments and Camilo Miguel

Mast Capital and Rockpoint Group have sold the West Isle Club Apartments in Key West to Priderock Capital Partners for $56.8 million.

The sale comes less than three years after Miami Beach-based Mast Capital and Boston-based Rockpoint paid $39.5 million for the complex. That represents a 44 percent gain before renovation expenses. 

West Isle Club, at 3333 Duck Avenue, has 192 apartments spanning 6.2 acres. It is located within Key West’s New Town District and near the Key West International Airport. The latest sale equates to $296,000 per apartment.

Mast Capital, an investment and development firm, and Rockpoint Group, a real estate private equity firm, upgraded the complex, including renovating more than half the units and improving the exterior of the community, resulting in higher rental rates, Mast Capital said. According to the complex’s website, current monthly rents range from $1,950 to $1,975 for 517-square-foot one-bedroom, one bath units to $$2,425 to $2,450 for two-bedroom, two-bath units and $2,875 for three-bedroom, two-bath apartments.

In Key West, Mast Capital and Rockpoint Group also own Ocean Walk, a 296-apartment community. In October, the owners secured $70 million in refinancing from Berkadia.

Both West Isle and Ocean Walk are among the few institutional-sized rental properties in the Keys, a top tourism destination for South Florida.

West Palm Beach-based Priderock is a multifamily asset management and development firm with more than 7,500 units across 15 states, according to the company’s website. In November, the company paid $36.5 million for a North Lauderdale complex it renamed Glen at Cypress Creek. The 224-unit community, at 1949 Cove Lake Road, sold for about $163,000 per unit. And in February 2016, Priderock bought Dakota at Abacoa, a 190-unit complex in Jupiter for $42 million, or $221,052 per unit.