Covenant Capital Group buys Tamarac apartments for $69M

Deal equates $188K per unit

Covenant Capital Group buys Tamarac apartments for $69M
Google Street View of 8900 Northwest 77th Court and 8800 Northwest 78th Court in Tamarac and Covenant Capital Group managing partners and co-founders Frederic Scarola and Govan White (Covenant Capital Group)

Covenant Capital Group bought the Lakeview Flats apartments in Tamarac for $69 million.

The Nashville, Tennessee-based investor bought the complex at 8800 Northwest 78th Court and 8900 Northwest 77th Court from affiliates of Ortsac Capital Group, based in Fort Lauderdale, records show. The buyer assumed a $35.1 million loan from the seller.

The deal for the 368-unit complex breaks down to $187,500 per apartment.

Lakeview Flats, which sprawls across 32.6 acres, was built in the late 1980s along a canal, property records show. Ortsac Capital Group bought the complex in 2017 for $54 million.

Ortsac Capital, founded by Bobby and Sofia Castro, has more than $300 million in its portfolio, according to its website.

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The group in August sold another suburban Broward County multifamily property, the Golfview Flats in Sunrise, to Snow Real Estate for $15 million.

Covenant Capital Group, whose managing partners and co-founders are Frederic Scarola and Govan White, focuses on buying multifamily and adding value to complexes through renovations, according to its website. It has $1.2 billion of assets under management and boasts $1.4 billion returned to investors.

Covenant has had other South Florida multifamily investments. It sold a West Palm Beach complex for $55 million in 2019.

The regional multifamily market is seeing perhaps unprecedented rent growth. Rates increased 7.9 percent across the region year-over-year, according to a Berkadia mid-2021 report. The supply has not kept up with pent-up demand from a workforce returning to work, as well as from population influx.

Tamarac is experiencing some new construction, with Eden Multifamily and Cypress Equity Investments developing the 212-unit Eden West.