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.
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.