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South Florida

Fractured condo near Tropical Park sells for $12M

Deal breaks down to $160k per unit

Miller Lakes condo
Miller Lakes condo

A fractured condo deal near Tropical Park in Miami just sold for $12.45 million.

10th Street Realty, a New York-based real estate investment firm, paid about $160,000 per unit for a controlling interest in the condo complex at 5400 Southwest 77th Court. The deal gives 10th Street Realty 78 of 108 condos, allowing the company to control 72 percent of the association, Deme Mekras of MSP Group said. Mekras and MSP’s Elliott Shainberg represented the buyer in the off-market deal.

Miller Lakes Group LLC, led by Alfonso Martinez, sold the units to the buyer as part of a 1031 exchange, Mekras said. The building was built in 1970.

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10th Street Realty is tied to Pyers Property Group in Astoria, according to New York state’s corporate records.

A handful of fractured condo deals have closed in South Florida in recent years. About a year ago, New York-based ESG Kullen paid $17.9 million, or about $151,500 per unit, for a bulk condo deal in Boynton Beach. Axonic Properties, also of New York, picked up 224 units of a 385-unit complex in West Palm Beach for $13.75 million, or about $61,000 per apartment, in 2016.

By purchasing units in bulk, investors can get control of a property’s homeowners association and rent the units out like they would in a typical multifamily deal.

MSP Group recently represented the seller in another fractured condo deal at 5795 West 26th Avenue in Hialeah. The buyer, De La Parte III, bought out 14 out of 22 units in the building for a 64 percent controlling interest in the HOA. The units sold for $2.3 million, or $166,000 per unit.