Starwood, A-Rod and partner buy South Florida single-family rentals to add to portfolio

Deal breaks down to $401K per house

Miami /
Jan.January 14, 2022 01:30 PM

From left: Alex Rodriguez and Barry Sternlicht (Getty Images, Starwood Capital Group, iStock)

A partnership that includes Starwood Capital Group, Tiber Capital Group and retired baseball player-turned real estate investor Alex Rodriguez paid $22.8 million for a single-family rental portfolio in Palm Beach County.

The single-family rental business has boomed, as home prices have reached record highs and buyers are being priced out of home ownership across the country.

The purchase adds to an existing South Florida portfolio of home rentals that the Starwood, A-Rod Corp. and Washington, D.C.-based Tiber Capital partnership has acquired since 2021, records indicate.

In this latest deal, a company led by Avi Stern sold 57 homes throughout Palm Beach County to SFR XII Miami Owner 1 LP, which breaks down to $400,568 per house. The same LLC has also bought homes and townhomes in Miami-Dade and Broward counties.

The South Florida Business Journal first reported in November that Tiber Capital Group CEO Simon Frost inked a partnership with Starwood Capital Group and A-Rod Corp. to buy and renovate home rentals. The partners have posted about the partnership on LinkedIn.

A Berkadia team led by Jaret Turkell and Roberto Pesant represented the seller of the Palm Beach County portfolio. Turkell said in a press release that the pandemic has “solidified single-family rentals as an alternative investment that is here to stay.”

Andrew Curtis, also on the Berkadia team that listed the property, said in the release that the buyers could modernize the homes and raise rents, increasing revenue.

The portfolio includes three houses in Lantana averaging 1,570 square feet; one 1,088-square-foot house in Greenacres; 30 homes in Lake Worth averaging 1,370 square feet; 16 Boynton Beach houses averaging 1,259 square feet; 15 homes in West Palm Beach averaging 1,265 square feet; and eight homes in Delray Beach averaging 1,286 square feet.

The houses were all built between 1930 and 2002, according to the release.

The seller, Stern, CEO of MIA Real Holdings LLC, was one of three real estate investors allegedly involved in a major scheme to rig online public foreclosure auctions between 2012 and 2015. He pleaded guilty in 2018 to felony charges of bid rigging tied to the property auctions in Palm Beach County and was sentenced to probation, which was terminated early last year, according to court records.

In November, one of his companies launched sales of a single-family home development in Boca Raton.





    Related Articles

    arrow_forward_ios
    Parmenter Realty Partners pays $81M for office complex in Palm Beach Gardens
    Parmenter buys Palm Beach Gardens office complex for $81M
    Parmenter buys Palm Beach Gardens office complex for $81M
    (LoopNet)
    Low vacancies, higher asking rents boost South Florida’s industrial market performance: report
    Low vacancies, higher asking rents boost South Florida’s industrial market performance: report
    Aerial view of some of the properties: 124 Bamboo Road, 112 Bamboo Road,  106 Bamboo Road, 135 Bamboo Road, 337 Bamboo Road (Google Maps)
    New York firm sells Palm Beach Shores apartment portfolio for $17M
    New York firm sells Palm Beach Shores apartment portfolio for $17M
    Billionaire founder of LoanDepot adds to South Florida resi portfolio
    Billionaire founder of LoanDepot adds to South Florida resi portfolio
    Billionaire founder of LoanDepot adds to South Florida resi portfolio
    Investment firm snaps up Delray Beach condo complex in $14M bulk purchase
    Investment firm snaps up Delray Beach condo complex in $14M bulk purchase
    Investment firm snaps up Delray Beach condo complex in $14M bulk purchase
    Shane Caiazzo, co-founder and co-CEO, CFGI, in front of 100 Ebbtide Drive in North Palm Beach (CFGI, Lux Hunters)
    Financial advisory CEO pays $9M for waterfront North Palm Beach home featured in “Mansion Quest” show
    Financial advisory CEO pays $9M for waterfront North Palm Beach home featured in “Mansion Quest” show
    The Main Las Olas office tower, One Flagler office tower, and Plantation Pointe office complex (The Main Las Olas, Related Southeast, Google Maps)
    A tale of two office markets: Broward vacancies rose while Palm Beach County’s declined
    A tale of two office markets: Broward vacancies rose while Palm Beach County’s declined
    (iStock/Illustration by Kevin Rebong for The Real Deal)
    December residential sales fall in Broward and Palm Beach counties, rise in Miami-Dade
    December residential sales fall in Broward and Palm Beach counties, rise in Miami-Dade
    arrow_forward_ios

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

    Loading...