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Former low-income South Beach apartments hit market as possible hotel conversion
Atlanta-based real estate investment firm paid $12M for 727 Collins Apartments in 2015
UPDATED, July 29, 5:30 p.m.: Jamestown is looking to cut off a slice of its Collins Avenue portfolio by listing a historic South Beach apartment building for sale.
The Atlanta-based real estate investment firm, led by CEO and principal Matt Bronfman, retained Marcus & Millichap to market 727 Collins Apartments at 727 Collins Avenue in Miami Beach, according to an online listing. Jamestown and Marcus & Millichap’s Joseph Thomas, who is leading the marketing efforts, declined comment.
After publication, Thomas said the price guidance is $15 million. 2015, a Jamestown affiliate paid $12.3 million for the four-story Art Deco building completed in 1930, records show.
The 25-unit property operated as a low-income, housing tax-credit apartment building until April when the restrictions expired, the listing states. As a result, potential buyers will be able to convert 727 Collins Apartments into a limited-service hotel or a short-term rental building, according to Marcus & Millichap. The 23,238-square-foot building, a mix of one- and two-bedroom apartments, also has a ground-floor retail store.
Jamestown also owns two other historic buildings near 727 Collins Avenue. In 2013, the company paid $12.4 million for a two-story commercial building at 736 Collins Avenue currently leased to Artechouse Miami art gallery, records show. Two years later, Jamestown bought a two-story building at 745 Collins Avenue, occupied by Victoria’s Secret, for $24.5 million.
Jamestown renovated the buildings at 727 Collins Avenue, 736 Collins Avenue and 745 Collins Avenue shortly after acquiring the properties, according to the firm’s website. As of June 30, Jamestown had $13.1 billion in real estate assets under management, the website states.
At the end of last year, Jamestown sold a 308-unit landlocked apartment complex in Sunny Isles Beach for $110.5 million.
Older buildings in Miami Beach are garnering interest from multifamily investors. In February, an investment group led by Montreal-based investor Michael Fischer paid $7 million for a pair of Art Deco apartment buildings at 2456 Flamingo Drive and 320 West 25th Avenue. The same month, Fischer and Chaim Gurman, a Lakewood, New Jersey-based investor, bought the 23-unit apartment building at 1319 Meridian Avenue for $5.9 million.