An entire condo building in North Bay Village that’s leased to a short-term rental operator sold for $17 million, or more than $1 million per unit, The Real Deal has learned.
The deal checks off all the boxes of what’s in demand by investors in today’s hot market: waterfront condos in a newer building that can be rented on a short-term basis.
Victory Developers, led by Anil K. Monga, sold the 15-unit Adagio Condominium at 7939 East Drive to Torres Properties owners Brooke and Christian Torres, according to a source. The couple owns and operates mobile home and RV resort communities in the Pacific Northwest. It marks their first investment in Miami.
Victory Developers paid about $3 million for the site in 2006, records show. The 15-story bayfront building was completed in 2008 and includes a 34-space parking garage, pool, gym and a sauna.
Sextant Stays, a Miami-based short-term rental operator led by founder and CEO Andreas King-Geovanis, has a master lease for the North Bay Village building with about five years left, according to Susan Gale of One Sotheby’s International Realty. Gale brokered both sides of the deal.
The two-story loft-style units have gourmet kitchens, marble bathrooms, wood and marble floors and direct bay views. Monga of Victory Developers developed the building, which has 14 two-bedroom, two-bathroom condos and one four-bedroom, four-bathroom unit, and two floors of penthouses. The units range from about 1,500 square feet to 4,500 square feet, according to the listing.
Gale said the $1.1 million-per-unit price for the Adagio property is “earth-shattering.” The property has a cap rate of more than 4 percent. Cap rates are the measure of rental income after expenses, divided by the property’s purchase price.
“We had a lot of interest,” Gale said. “We had [multiple] offers, especially after we had it under contract. The investment market, whether it’s apartments, condos, hotels, is moving quickly. Prices continue to go up.”
Multifamily investment has ramped up in North Bay Village, a small municipality between Miami and Miami Beach that consists of three islands. In December, iStar, through its ground-lease arm Safehold, bought the Moda North Bay Village Apartments along Biscayne Bay for $122 million. Shoma Group and the billionaire Ansin family’s Sunbeam Television are among the major players in the town.
In the bulk condo sale, Monga provided the buyer with seller financing, Gale said, declining to disclose the amount. The buyers plan to renovate the property “to bring it to another level,” she added.
Monga is also CEO of Victory International USA, which manufactures and distributes name brand fragrances and cosmetics. His other real estate holdings include the Hotel Astor, an Art Deco property in Miami Beach, which he acquired for $12.8 million last year.
Sextant Stays inked a “somewhat below-market” lease at the beginning of the pandemic, Gale said, when property owners were unsure of the effects it would have on the market. Since then, the hotel and short-term rental market has bounced back, especially for leisure travel, and the multifamily market has boomed.
At one point, penthouses at the North Bay Village building were renting for as much as $20,000 per week, Gale said.