A joint venture between American and Canadian real estate firms bought a Bay Harbor Islands apartment complex.
Solu Real Estate and 3T Equity’s BH1 Property Holding LP bought 34 units from Miami-based Category Five Ventures, with junior partner Mike Peisach signing, records show. The $12.5 million deal includes a 17-unit complex at 9800 East Bay Harbor Drive, and 17 units across the street at 9770 and 9790 East Bay Harbor Drive and 1050 98 Street, according to a press release.
The price equates to $368,000 per unit.
Michigan-based Solu Real Estate is led by Adam Lutz of Lutz Investments and Matthew Sosin of Northern Equities Group. 3T Equity is a Toronto-based real estate investment firm led by David J. Goldstein, Lawrence Moskovic and Jordan Rich.
Category Five Ventures bought the apartments for $8.2 million in 2021, property records show. The properties include a pool and have a mix of short-term and long-term rental units, according to the release. The joint venture plans to rebrand the properties, and is considering redevelopment, the release states.
The move comes as South Florida’s multifamily boom appears to be stumbling, with property values and occupancy down. As a result, landlords are offering concessions like a month of free rent and fee reductions.
While multifamily is taking a hit, Bay Harbor Islands is seeing a wave of condo and apartment development. Developers have spent more than $150 million on project sites, and more than 400 units are in the pipeline for the island community.
The majority of these developments are luxury condominiums. Jonathan Landau launched sales for his nine-unit Bay Harbor project in July, Chicago-based Regency launched sales for its 42-unit La Maré condominium in April, and Chilean developer VDA | Origin Miami kicked off sales for its 27-unit Artefacto-branded condos in March.
Clara Homes, led by James Curnin, plans 73 luxury apartments at two different sites in Bay Harbor Islands. The Miami-based developer bought the assemblage for a combined $17.6 million.