The Real Deal Miami

Hollywood firm sells Oakland Park apartment complex for $13.5M

Price breaks down to $95,745 per unit, meaning it traded at a 35% gain in 18 months
By Amanda Rabines | August 04, 2017 05:15PM

The Oasis Apartments Inset: Derek Gibbs, Daniel Cunningham, and Eric Richardson

Coastline Management Group just sold its 141-unit apartment complex in Oakland Park for $13.5 million, according to a release.

Hollywood-based Coastline, led by Felice Mehaber, sold the Oasis Apartments at 3870 North Andrews Avenue just 18 months after purchasing the property for $10 million.

Marcus & Millichap’s Daniel J. Cunningham, Derek R. Gibbs and Evan Richardson had the listing. The price breaks down to $95,745 per unit, meaning it traded at a 35 percent gain – a big premium over the $71,428 per unit price Coastline Group paid in January 2016.

The buyer is unclear because the sale has not yet cleared records. A source close to the sale said the buyers also own an apartment complex nearby called La Estancia at 4156 Northwest 21st Avenue. Records show Jorken Crystal Lake LLC, led by Herbert Jordan, Ken Baca and Axel Jordan owns La Estancia.

Oasis Apartments, built in 1976, consists of seven buildings on five individual parcels. The apartment complex offers one- and two-bedroom apartments with access to two pools.

Gibbs said the seller spent about $300,000 to $500,000 in renovations, which included pressure cleaning the buildings, renovating the pools and adding kitchens and bathrooms to certain units. He said the complex, which sits on a 3.7-acre lot, sold 98 percent occupied.

Coastline sold the complex at a time when the supply of new multifamily inventory is outpacing demand. This year alone, nearly 13,500 new apartments will be delivered in South Florida, marking the fifth most active city in the country for multifamily construction, according to a report from RentCafe.

And rent growth is predicted to slow as the region’s occupancy rate dips. South Florida’s occupancy rate averaged 94.8 percent, down slightly from the previous quarter, according to Berkadia’s second quarter report.

Yet, institutional investors are busy trading apartment complexes after a slow period in the market. Recent deals include the $45.3 million sale of a 268-unit apartment complex in Coconut Creek, and the $49 million sale of a Boynton Beach rental community, which Robbins Electra sold to TruAmerica Multifamily.