A trio of Little Havana apartment buildings traded for a total of $29 million, a sign investors are flocking to another South Florida multifamily submarket that’s catching fire.
Investors are scoping out Miami’s Little Havana because the neighborhood is experiencing an influx of new renters seeking greater affordability and public transit options while staying close to downtown Miami, Brickell and Miami International Airport and other job centers in Miami-Dade County, said Carlos Fausto Miranda with Fausto Commercial Realty.
Miranda and Mauricio Villasuso, also with Fausto Commercial, represented the sellers of the three apartment buildings and two of the buyers. “When a place is attractive for tenants, it is attractive for investors,” Miranda said. “Little Havana is a place people want to live. The area has very good long-term prospects for quality and quantity of rent growth.”
Even though rents in Little Havana are between 30 percent and 40 percent higher than a year ago, the neighborhood’s prices are very attractive compared to downtown Miami and Brickell, Miranda said. “It’s a fraction of the rents there,” he said. “It creates opportunities for prospective tenants to retain a level of affordability and a strong element of connectivity in the sense that it is easy to get to surrounding employment centers from Little Havana.”
718 Northwest First Street
An entity managed by Arturo Ortega of Miami paid $10.7 million for a 36-unit building at 718 Northwest First Street, records show. The buyer obtained a $6.8 million mortgage from International Finance Bank.
The buyer paid $297,222 per apartment.
The seller, an entity managed by William Manchin and Gerardo and Luis Merino, bought the land for $1.1 million in 2004 and completed the building in 2015, records show,
Miranda and Villasuso represented the seller and the buyer.
Andes Apartments, 1250 Southwest Sixth Street
An entity managed by Armando Bardisa and Syam Ibrahim of Miami paid $9.2 million for the Andes Apartments, a 71-unit building at 1250 Southwest Sixth Street, records show. Delaware entity EMG Transfer Agent provided the buyer with a $8.3 million mortgage.
The deal breaks down to $129,577 per apartment.
The seller, an entity managed by Izhak Wanounou of Miami, paid $3.9 million for the property in 2004, records show. The building was completed in 1929.
Miranda and Villasuso represented the seller and the buyer. The buyer intends to renovate and restore the building, Miranda said.
2900 Northwest Seventh Street
An entity managed by Wanounou bought the 35-unit building at 2900 Northwest Seventh Street for $9.4 million, records show. The deal breaks down to $268,571 per apartment.
The seller, an entity managed by Miami attorney and developer Gil Contreras, bought the land for $1.1 million in 2005 and completed the seven-story building in 2010, records show.