REIT to pay $322M for sprawling Pembroke Pines apartment complex
It’s the largest multifamily deal to close in South Florida in 2019
In what will likely be the largest multifamily sale in South Florida this year, NexPoint Residential will pay $322 million for a 1,520-unit multifamily property in Pembroke Pines.
NexPoint Residential, a publicly traded real estate investment trust, is under contract to buy the apartments, known as the Avant at Pembroke Pines, at 11801 Pembroke Road for about $212,000 per unit, according to a press release. Park City, Utah-based National Property REIT Corp. is the seller.
The building is 96.1 percent occupied with an average effective monthly rent of $1,487, the release states. The deal is expected to close on Aug. 30.
NexPoint Residential is a publicly traded REIT that is primarily focused on value-add opportunities. It is an affiliate of Highland Capital Management, a Dallas-based hedge fund founded in 1993 by Jim Dondero and Mark Okada.
The Pembroke Pines apartment complex last sold for $225 million for 2013, according to property records.
Avant at Pembroke Pines was built in phases between 1986 and 1990. It includes three swimming pools, resident clubhouses, walking and jogging trails, tennis courts, and two playgrounds.
NexPoint Residential is planning to renovate the interiors and common areas, according to the company. The company plans to spend an average of $9,286 to upgrade 966 units, which comes out to about $8.97 million.
The massive $322 million deal signals the strong demand for multifamily properties in the suburbs of South Florida. As rents and home prices continue rising in urban core markets like Miami and Fort Lauderdale, more people are moving to the suburbs.
Earlier this year, Blackstone Group paid nearly $209 million, or about $290,000 per apartment, for a pair of neighboring apartment complexes in Doral totaling 720 units.