Deepak Khosa keeps stacking up South Florida apartment complexes, adding a 105-unit property in Homestead to his growing multifamily portfolio.
Khosa, a real estate investor who owns Palm Beach Gardens-based Atlantic Property Services, told The Real Deal that his company recently paid $10.6 million for Card Sound, a garden-style community at 27707 South Dixie Highway. The purchase was financed with a $7.5 million Freddie Mac loan, Khosa said via text message.
“We have seen the south part of [Miami-Dade] getting more migration due to the affordability factor,” Khosa said. “We will make significant improvements to the property.”
The deal equates to $100,952 per apartment.
The seller is Victoria One Card Sound LP, an entity whose ownership group includes Todd Linden, co-principal of Circle Capital, a Coral Gables-based real estate firm that focuses on multifamily, senior living and retail, according to its website.
In 2014, Victoria One paid $6.4 million for Card Sound, which spans 4.52 acres, records show. It is a collection of four two-story buildings completed in 1974 and renovated in 2012.
A Cushman & Wakefield team led by Calum Weaver and Robert Given represented the seller.
The deal closed at $700,000 below the $11.3 million listing price.
Card Sound is in an area of Miami-Dade experiencing one of the highest population growth rates in Florida, according to Cushman & Wakefield’s offering. In 2020, the south Dade-Homestead submarket absorbed 1,092 units, accounting for 30 percent of all apartments absorbed in Miami-Dade last year, the offering states.
After making renovations, the new owner could experience a 40 percent return on investment by jacking up rents of about $100 per unit, according to the offering. Card Sound, which is 98 percent occupied, offers modest monthly rentals at a time demand for apartments across South Florida has sent rents skyrocketing. According to the offering, rents start at $693 for a 305-square-foot studio and go up to $993 for a 625-square-foot two-bedroom apartment.
Khosa has been in acquisition mode most of the year. Five months ago, he acquired the seven-building, 57-unit Lake Arjaro Apartments in West Palm Beach for $7.9 million. In February, Khosa closed on the Seaspray Inn and Beach Resort on Singer Island for $8.1 million. He is planning on converting and renovating the 50-key hotel into a multifamily property.