Opportunity Zone site in Fort Lauderdale’s Sistrunk District hits the market for $27M

Fuse Funding assembled the property for $9.8M over the past year
By Katherine Kallergis | April 29, 2019 04:30PM

Rendering of the site, Tony Arellano and Devlin Marinoff

Rendering of the site, Tony Arellano and Devlin Marinoff

An Opportunity Zone development site in a booming Fort Lauderdale neighborhood hit the market for $27 million.

Property records show a company controlled by Fuse Funding’s Ofer Tamir owns the 4.4-acre assemblage at 601 Northwest Sixth Avenue in the Sistrunk District. Tamir is also a co-founder of Florida Prime Acquisitions, a real estate investment company with hundreds of properties in South Florida.

The $27 million price tag is based on a per-multifamily unit price of nearly $42,000, said listing brokers Tony Arellano and Devlin Marinoff of Dwntwn Realty Advisors. The site, within Fort Lauderdale’s CRA, is eligible for cash subsidies, Arellano said. The brokers are proposing 650 units on the property, which is consistent with other sites that have been spot-zoned, he added.

A comparable multifamily site in Miami could trade for $55,000 to $65,000 per door, he said.

Fuse Funding affiliate Sunshine Shipyard LLC paid a combined $9.8 million to assemble the lots between June 2018 and April of this year, according to property records.

The assemblage is in one of the more than 8,700 designated Opportunity Zone sites in the U.S. The program, passed through President Trump’s 2017 tax plan, gives investors and developers the chance to potentially defer some of their capital gains taxes by investing in historically distressed areas.

Days after Fuse Funding closed on the final piece of the assemblage, the government released its much-anticipated set of Opportunity Zone regulations. Under the new rules, funds now get a 12-month grace period to sell Opportunity Zones assets and then reinvest the proceeds into an Opportunity Zone.

Development was already booming in the Sistrunk neighborhood, which is near Flagler Village, FATVillage, Fort Lauderdale’s central business district and Florida East Coast Industries’ Virgin high-speed rail station. Earlier this year, Affiliated Development scored a $19.3 million construction loan to build The SIX13 apartment project, also in a qualified Opportunity Zone at 13 Northwest Third Avenue.

“To me it almost feels like a very small Wynwood,” Arellano said of Sistrunk. “This was the old forgotten industrial neighborhood of Fort Lauderdale.”