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South Florida

Steve Ross’ Related scoops up affordable rental complex in Miramar for $48M

Firm took out $25M Fannie Mae loan, assumed $5M in existing debt

ZOM Sells Miramar Affordable Rentals to Steve Ross’ Related
The Sorrento apartment complex at 8991-9577 Southwest 41st Street in Miramar, FL with NRP Group’s J. David Heller, ZOM Living’s Greg West and Related Companies’ Stephen Ross (NRP Group, ZOM Living, Getty, Google Maps)

Steve Ross’ Related Companies bought an affordable apartment complex in Miramar for $48.2 million. 

The New York-based firm scooped up the 320-unit, garden-style Sorrento complex at 8991-9577 Southwest 41st Street from an entity tied to ZOM Living and NRP Group, according to records and real estate database Vizzda. The deal breaks down to $150,625 per apartment. 

Related took out a nearly $25 million loan from Fannie Mae that matures in 2030. The firm also assumed existing debt, consisting of a $3.9 million mortgage from the Florida Housing Finance Corporation and a $1 million loan from Valley Bank, according to Vizzda. 

ZOM and NRP’s affiliate completed Sorrento in 2012, after purchasing the 16-acre site for $5.6 million in 2011, records show. The developers’ entity took out the FHFC and Valley Bank loans in 2011. 

Sorrento consists of 13 three-story buildings and a one-story building offering one- to three-bedroom apartments, ranging from 651 square feet to 1,187 square feet, according to Vizzda. 

The complex is nearly fully leased, according to a ZOM news release. 

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It’s restricted to households earning no more than 60 percent of the area median income, with monthly rents ranging from $826 for a one-bedroom to $1,382 for a three-bedroom apartment, ZOM’s release says. Broward County’s AMI is $88,500 annually, FHFC data shows. 

ZOM is a multifamily development firm that has completed over 24,000 units nationwide valued at $5 billion, and has another 4,500 units in the pipeline, according to the release. Led by Greg West, the firm lists offices nationwide, including in Orlando and Dallas. 

Cleveland, Ohio-based NRP also is a multifamily development firm that has a hefty focus on below-market rate units, according to its LinkedIn. Founded in 1995, the company has completed more than 35,000 units and has 19,000 apartments under management. J. David Heller leads NRP. 

The Sorrento deal marks at least the second affordable housing community Related purchased from ZOM and NRP over the past year. In November, Related paid $55.5 million for the Monterra complex at 2601 Solano Avenue in Cooper City, which ZOM and NRP completed in 2012. 

While Related has a hefty portfolio of high-end residential and commercial projects, the firm started out as an affordable housing developer in 1972. Its portfolio of affordable and workforce housing consists of roughly 60,000 units nationwide, according to Related’s website. 
In 2021, Related bought a pair of affordable housing rental complexes, the Saint Andrews Residence at 208 Fern Street, and the Saint James Residence at 400 South Olive Avenue in West Palm Beach, for a combined $65 million.

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Tags
Affordable HousingBroward CountyMiramarMultifamilyRelated CompaniesSouth Florida Multifamily MarketStephen RossSteve RossZom