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.

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.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

“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.