The Real Deal Miami

South Florida’s largest multifamily investment sales in August

$71M deal for complex near Hialeah topped the month's sales
By Keith Larsen |
Research by Laura Hanrahan
September 18, 2018 10:45AM

Photos of the five apartment complexes

Large out-of-state investors are continuing to see value in South Florida’s multifamily market.

In August, a number of institutional investors bought apartments at a significant markup from their previous price.The largest sale of the month was the $71.3 million deal of The Latitudes at the Moors, an apartment complex that TIAA purchased near Hialeah. Many of the top deals are for properties outside of the urban core, such as Lake Worth in Palm Beach County.

The August investment sales figures were compiled from Miami-Dade, Broward and Palm Beach County property records.

The Latitudes at the Moors – TIAA | $71.3 million

Nuveen Investments, which serves as the investment management arm of TIAA bought the 358-unit Latitudes at the Moors at 6200 Northwest 173rd Street for about $200,000 per unit.

Nuveen Investments financed the deal with a $31 million loan from Principal Life Insurance Company.

The seller, SDC Latitudes at the Moors, is tied to RREEF Property Trust. Records show it paid $22.15 million for the 12-acre property in 2000. The company is an arm of Chicago-based DWS Group, previously known as Deutsche Asset Management.

The complex was built in 1989 and offers lake views, and residents are given access to the adjacent Moors Club Center, which features tennis courts, playgrounds, several pools, a fitness facility and a lakefront fishing pier.

Vista Verde at Westchester – The Rilea Group | $59.75 million

The Rilea Group sold an apartment complex near Florida International University to Advenir for $59.75 million.

Vista Verde at Westchester, a 302-unit complex at 10491 Southwest 14th Terrace, just east of the university, sold for about $198,000 per apartment. Cushman & Wakefield’s Robert Given, Troy Ballard, Zachary Sackley and James Quinn represented Rilea, according to a release.

Advenir financed the deal with a $44.32 million loan from Freddie Mac. Berkadia’s Charles Foschini, Christopher Apone and Lourdes Carranza-Alvarez arranged the 11-year, fixed-rate loan with six years of interest.

The property was built in 1993 and is being marketed as a value-add complex. About 20 percent of the units have been updated, Cushman said. Rilea, which focuses on value-add commercial properties in South Florida, paid $2.2 million for the site in 1988, according to property records.

Aqua Isles Apartments – Mill Creek Residential | $37.2 million

Mill Creek Residential paid $37.2 million for a 127-unit apartment complex in Dania Beach.

The Dallas-based company bought the complex, known as the Aqua Isles Apartments at 4791 Southwest 39th Way for $29,330 per unit. Mill Creek purchased the property from Principal Real Estate Investments, a subsidiary of the Des Moines, Iowa-based insurance company Principal Financial Group. Roberto Pesant, Chris Conklin, and Omar Morales of Walker & Dunlop Investment Sales represented Principal Real Estate Investors in the sale.

Mill Creek financed the acquisition with a $24.4 million mortgage from MetLife Real Estate Lending.

The 155,6860-square-foot apartment building was constructed in 2012. Principal Real Estate Investments originally purchased the newly built complex in 2012 for $28.5 million from Aqua Isles by Carr Residential, a company affiliated with veteran developer James Carr.

Oakwood Apartments – Naya USA Investment & Management | $25.6 million

Naya USA Investment & Management sold an apartment complex in Lake Worth for twice what it paid for the property four years ago.

The Hollywood-based company sold the 160-unit, 200,000-square-foot development at 2425 Second North Avenue for $25.6 million, about two times the $12.9 million that Naya paid for the property in 2014. One Real Estate Investment, led by Jeronimo Hirschfeld, bought the complex, known as Oakwood Apartments.

One Real Estate paid about $160,000 per unit. The development, built in 1993, is near Palm Beach College. It’s 96 percent occupied, Hirschfeld, chairman and CEO, said. The apartments are all four-bedrooms and each rent for about $1,500.

Tal Frydman, Yoav Yuhjtman, Nicholas Perrone of Berkadia represented the seller, according to a press release. Berkadia’s Brad Williamson and Jared Hill also arranged a $19.23 million seven-year, fixed-rate loan for the buyer to finance the deal.

Royal Oaks – Preston Giuliano Capital Partners | $22.8 million

Alex Rodriguez’s business partner sold a townhome complex in Hollywood for $22.8 million, or about $330,000 per unit.

Property records show Royal Oaks United, owned by Stuart Zook, sold the 69-unit Royal Oaks apartment complex at 3200 Stirling Road to Preston Giuliano Capital Partners, a multifamily investment firm.

Monument Real Estate Services, owned by the former New York Yankees player, managed the property, a spokesperson said. Zook is a principal at Monument Capital Management, also owned by Rodriguez.

Calum Weaver of Cushman & Wakefield represented the seller.

The buyer financed the deal with an $11.75 million mortgage from the American Family Life Assurance Company of Columbus, also known as Aflac.

Royal Oaks United purchased the 5-acre property in 2015 for $19 million from the New York-based Chetrit family. Chetrit paid $4 million for the land in 2004 and completed the complex in 2008. The townhouses rent for nearly $2,500 a month.