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Aging Miami Beach rentals command $240,000 per unit

The 20-unit property sold for $4.8 million despite its limited cash flow and deferred maintenance

2150 Park Avenue in Miami Beach (Source: Google)
2150 Park Avenue in Miami Beach (Source: Google)

A 20-unit apartment building in Miami Beach sold for $4.8 million, or $240,000 per apartment, despite the building’s limited cash flow and substantial maintenance needs.

The 60-year-old rental property at 2150 Park Avenue, which includes a 7,500-square-foot lot, is located across from the Bass Museum and Collins Park in Miami Beach.

The apartment building has one efficiency-style unit and 19 one-bedroom, one-bathroom units. Originally constructed in 1947, the building has 9,792 square feet of living area.

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Three members in the Fort Lauderdale office of brokerage Marcus & Millichap had the exclusive listing to market the property: associate Brett McMahon, Joseph P. Thomas, first vice president investments, and Adam G. Duncan, vice president investments.

“The property had a significant amount of deferred maintenance and limited in-place cashflow,” Thomas said in a prepared statement.

Nevertheless, the Marcus & Millichap team generated 10 written offers for the property because of its RM-2 zoning and its potential for conversion to a short-term rental property.

The Marcus & Millichap team represented the seller, a private investor who bought the Miami Beach property more than 30 years ago, and secured the buyer, also a private investor.

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