Prashkovsky’s US arm sells Deerfield Beach apartment complex for $25M
Category Five Real Estate, led by brothers Mike and Leon Peisach, is the buyer
Multifamily investment firm Category Five Real Estate bought a Deerfield Beach apartment complex for $24.6 million.
Aventura-based Category Five, led by brothers Mike and Leon Peisach, bought the six two-story buildings at 311-601 Northwest 42nd Court from Prashkovsky USA, according to records and real estate database Vizzda. The deal breaks down to $157,692 per apartment.
Records and Vizzda show that Boise, Idaho-based Hawkins Companies, led by CEO Brian Huffaker, also is a buyer, purchasing a 27.6 percent stake in the property.
The buyer took out a $14.8 million fixed-rate loan with a seven-year term, according to a Berkadia news release. Santander Bank is the lender, records show.
Yoav Yuhjtman and Jose Mota of Berkadia represented Prashkovsky USA in the sale. Members of Berkadia also represented the buyer in the financing deal.
The complex, called San Marco 1, was completed from 1973 to 1974 on 6.2 acres, according to Vizzda and a Berkadia news release. It consists of two-bedroom apartments ranging from 810 square feet to 900 square feet.
Prashkovsky USA purchased the property in two deals in 2011 and 2016 for a combined $7.5 million, according to records.
San Marco 1 is fully leased, Mike Peisach told The Real Deal.
He and Leon Peisach officially founded Category Five Real Estate in 2021, though they started purchasing properties in about 2013, Mike Peisach said. The firm mainly focuses on multifamily.
The Peisachs’ family office is Category Five Ventures, a South Florida-based accelerator that invests in start-ups and has a focus on fintech, energy cogeneration, real estate, metaverse and other industries. Alberto Peisach, Mike and Leon’s father, started and leads Category Five Ventures, according to his LinkedIn.
In August, an entity led by Mike Peisach sold a 34-unit apartment portfolio at 9800 East Bay Harbor Drive, 9770 and 9790 East Bay Harbor Drive, and 1050 98 Street, in Bay Harbor Islands for $12.5 million.
Prashkovsky USA is the U.S. arm of Tel-Aviv-based Prashkovsky Group, a family firm founded in 1989 that focuses on development and construction, TRD has reported.
Prashkovsky USA has been selling some of its long-held assets, with plans to reallocate capital for its “diversification strategy,” Adi Karadi, company CEO, said in the Berkadia release.
Last year, Prashkovsky USA sold 160 of the 192 condo units at the Luna at Hollywood complex at 3600 Van Buren Street in Hollywood for $33.9 million.
This year, elevated interest rates ended South Florida’s multifamily investment sales party. The biggest deal since January was Air Communities’ purchase of Southgate Towers at 910 West Avenue in Miami Beach for $223.5 million. That price is far below the $440 million biggest sale of last year.
Deerfield Beach was devoid of major multifamily trades this year, though some developers plan new projects in the city. Boca Raton-based Grover Corlew scored approval for a 360-apartment development on 16.5 acres southeast of I-95 and Hillsboro Boulevard.
Jewish service organization B’nai B’rith plans a 62-unit apartment building at 255 Southwest Third Avenue. The project would be the fourth building of B’nai B’rith’s three-building complex for low-income senior residents.