Fairstead bought an affordable housing complex in Lauderhill for $26.5 million, marking continued investment in South Florida’s low-income rental market.
The New York-based firm, led by Jeffrey Goldberg, purchased Lauderhill Point at 3144-3146 Northwest 19th Street and started renovating the 177-unit property, according to records and real estate database Vizzda. An affiliate of Camden, New Jersey-based The Michaels Organization sold the complex. The deal breaks down to $149,718 per apartment.
Fairstead borrowed $40 million from the Housing Finance Authority of Broward County, which reassigned the loan to BNY Mellon. The buyer also borrowed a $550,000 Freddie Mac loan. Both debts mature in 2041, records show.
Completed in 1973, Lauderhill Point consists of 23 two-story buildings on 8 acres, according to Vizzda. Led by John O’Donnell, Michaels had paid $9.4 million for the complex in 2008.
Records show that Fairstead signed agreements to continue to operate the complex as low-income and Section 8 housing.
Fairstead was founded by Goldberg, Stuart Feldman and Will Blodgett, though Blodgett split from the company in 2021. The firm’s portfolio consists of over 24,000 units, according to its website.
In 2020, Fairstead paid $17.9 million for the Federation Gardens of Davie senior affordable rental complex at 5701 Southwest 82nd Avenue in Davie. In New York, Fairstead and Invesco Real Estate paid $350 million for a portfolio of 48 buildings with over 2,000 affordable housing units scattered across the Bronx.
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Developers and investors are targeting South Florida’s affordable housing market, which can sometimes offer profits that outshine market-rate rentals. The tri-county region’s rental crisis has left many residents priced out of market-rate apartments, and led to healthy demand for affordable units.
Last year, Steve Ross’ Related Companies bought the Sorrento affordable rental complex at 8991-9577 Southwest 41st Street in Miramar for $48.2 million. Shortly thereafter, the New York-based firm also bought the Federation Plaza Apartments complex for low-income senior residents at 3081 Taft Street in Hollywood for $29.7 million.
Lauderhill also has had some market-rate apartment deals in recent years. Miami-based REO Asset Specialists paid $17.4 million for the majority of the condos at the One Circle Condominium property at 2601 and 2611 Northwest 56th Avenue in 2022. Also in 2022, Clarion Partners scooped up the Serramar Apartments at 6701-6950 Landings Drive for $72 million.