Record multifamily deal: Starwood buys Dadeland apartment towers

Mill Creek developed the two 25-story towers with 844 units in 2018 and 2020

Miami /
Oct.October 13, 2021 06:00 PM

Barry Sternlicht, Co-Founder, Chairman & CEO, Starwood Capital Group; The Palmer Dadeland Apartments at 8215 Southwest 72nd Avenue in Miami, FL (Starwood Capital Group, Palmer Dadeland, iStock)

Starwood Property Trust paid $371.1 million for two apartment towers near Dadeland Mall, marking the most expensive multifamily investment sale of the year in South Florida.

Starwood bought the Palmer Dadeland, at 8215 and 8217 Southwest 72nd Avenue, according to S&P Global Ratings. The two 25-story buildings have a combined 844 units.

The seller is Mill Creek Residential, according to property records.

The Starwood real estate investment trust paid nearly $440,000 per unit for property. It appears that Mill Creek sold its ownership in the property by selling the company that owns the buildings. A deed has not been recorded. The sale closed Aug. 25.

Miami Beach and Greenwich, Connecticut-based Starwood, led by chairman and CEO Barry Sternlicht, is expected to close on a nearly $260 million loan from Wells Fargo on Oct. 21, according to S&P. It is a two-year, interest-only, floating-rate commercial mortgage loan that will mature in October 2023.

Boca Raton-based Mill Creek built the first Palmer Dadeland tower in 2018 and the second tower in 2020. The units average 951 square feet, and the buildings have nearly 1,200 parking spaces. The LEED Silver-certified towers include a business center, fitness center with spin and yoga rooms, a two-story billiards lounge, game room, two rooftop decks, a pet spa and pools.

The Starwood REIT and its affiliates own 349 apartment properties with 88,000 units. Nearly half of those units are in Florida, according to S&P.

Tower I at Palmer Dadeland saw 46.2 percent of its tenants renew in September. At the second tower, more than half of the tenants with leases that expired last month renewed for another year. Rent collections in September hovered between 98 percent and 99 percent, according to S&P.

Apartment rents and occupancies have each been on the rise in South Florida, and a number of major sales have closed this year. Prior to this sale, the largest multifamily deal this year was Cortland’s $230 million purchase of a new, seven-building apartment complex in Boca Raton in August.

Other recent deals include Dermot’s $160 million purchase of the Cordoba apartment complex near Downtown Doral, and AEW Capital Management’s acquisition of the newly built Tamiami Landings and Banyan Ridge apartment complexes for $123 million in October.

Mill Creek has been busy in South Florida. The company recently began leasing Modera Flagler Village, a 24-story, 350-unit luxury apartment tower near downtown Fort Lauderdale, according to Mill Creek’s website.





    Related Articles

    arrow_forward_ios
    From left: Fuse Group’s Eyal Peretz and Shimon Elkabetz along with a rendering of The Arcadian project (Fuse Group, TBA)
    Eyal Peretz’s Fuse gets final OK for multifamily near Flagler Village
    Eyal Peretz’s Fuse gets final OK for multifamily near Flagler Village
    From left: Axonic Properties’ Jonathan Shechtman and Clayton DeGiacinto; Integra Investments’ Nelson Stabile; the Bella Vista apartment complex at 3541 Northwest 30th Place in Lauderdale Lakes (Getty, Google Maps, Axonic Properties, Integra Investments)
    Axonic scoops up Lauderdale Lakes multifamily in $64M deal
    Axonic scoops up Lauderdale Lakes multifamily in $64M deal
    Andrew Zobler with a rendering of the NoMad Residences project in Wynwood
    Farsighted: Andrew Zobler talks hotel market, surviving the dip and more
    Farsighted: Andrew Zobler talks hotel market, surviving the dip and more
    Alta Development’s Henry Pino along with 160 and 180 Southwest Ninth Street (Getty, Google Maps)
    Henry Pino’s Alta bets on Brickell resi market
    Henry Pino’s Alta bets on Brickell resi market
    Lincoln Property Company’s Tim Byrne and the development site at 3450 Northwest 85th Court in Doral (Google Maps, Lincoln Property Company)
    Lincoln scores $103M construction loan for Doral apartments
    Lincoln scores $103M construction loan for Doral apartments
    (Photo Illustration by The Real Deal with Getty Images)
    After Ian: South Florida’s construction costs, insurance to rise
    After Ian: South Florida’s construction costs, insurance to rise
    Lynd's David Lynd with project rendering of development site at 9300 South Dixie Highway (Lynd Development Group)
    Lynd unveils $30M Dadeland self-storage project
    Lynd unveils $30M Dadeland self-storage project
    Florida Atlantic University processor Ken Johnson and Brown Harris Stevens' Sheila Rojas (Florida Atlantic University, Brown Harris Stevens, Getty)
    Record rent hikes had slowed. Ian may change that
    Record rent hikes had slowed. Ian may change that
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...