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Lyon Living Pays $33M for Sunrise apartment complex
Newport Beach, Calif.-based firm paid nearly $260K per apartment for Courtyards at Sunrise
A garden-style rental community in Sunrise traded for $13 million above its previous sale price three years ago.
An affiliate of Lyon Living, a Newport Beach, California-based multifamily real estate investment firm, paid $33.1 million for Courtyards at Sunrise, a 128-unit apartment complex at 4108 Pine Island Road, records show. The buyer obtained a $28 million loan from Comerica Bank.
The deal breaks down to about $260,000 per apartment.
Led by Chairman and CEO Frank Suryan Jr., Lyon Living owns and manages 38 multifamily properties in California, Colorado, Nevada and Florida, according to its website. The company also owns the garden-style apartment community Atwater at Sunrise at 10000 Reflections Boulevard in Sunrise.
A Walker & Dunlop team led by Still Hunter and Kaya Suarez brokered the sale on behalf of the seller, an affiliate of Tamarac-based Ortsac Investments, according to a press release. In 2019, Ortsac paid $20.2 million, or $158,000 per unit, for the complex, records show. At the time, the 6-acre property was known as Horizons Apartments. Totaling nearly 167,000 square feet, the community was completed in 1975.
Courtyards at Sunrise is 98 percent leased, the release states. Over the last 60 days, the previous owner raised rents by an average of 40 percent on all new leases and 14 percent on all renewals, according to Walker & Dunlop. The property is a mix of one- and two-bedroom apartments.
Despite rising interest rates and slowing renter demand, investors are still betting big on South Florida’s multifamily market. Investors paid record per-unit prices in the tri-county region during the first six months of the year, shelling out an average above $300,000 per apartment in Miami-Dade, Broward and Palm Beach counties, according to Cushman & Wakefield.
From January through June, apartment properties accounted for $5 billion in sales, the second-highest amount on record, Cushman’s mid-year South Florida multifamily update states. Investors paid a total of $5.7 billion for multifamily assets in the second half of last year.
This month, Marty Caparros’ Prestige Companies sold a multifamily portfolio in Hialeah for $17 million, 30 percent above the firm’s purchase price last year. The buyer, Miami-based Puchero Corp., paid $200,000 per apartment.
In Pompano Beach, Pulso Capital Group paid $551,000 per unit in a $21.5 million deal for Stellar at Palm Aire, a community of 39 rental townhomes.