Morgan Group and Carlyle Group are moving ahead with plans for a new garden-style apartment complex in Pompano Beach after paying $18.8 million for a redevelopment site that includes a shuttered Macy’s store.
The New York-based department store chain sold a 150,353-square-foot retail building at 1200 Northeast 12th Street within the Pompano Beach Citi Centre open-air mall to an affiliate of Morgan and Carlyle, records and real estate database Vizzda show. The buyers paid $10 million for it.
In a separate deal, Morgan and Carlyle also purchased the parking lot surrounding the empty big box store from the mall’s owner, an affiliate of West Palm Beach-based Sterling Organization, for $8.8 million.
Morgan, a Houston-based multifamily developer, and Carlyle, a Washington, D.C.-based global investment firm, are planning eight four-story buildings with 356 apartments and 545 parking spaces on the nearly 12-acre site. The Pompano Beach City Commission approved the project in 2021.
Led by CEO Harvey Schwartz, Carlyle has $425 billion in assets under management. In 2021, an affiliate of the firm sold B Ocean Resort Fort Lauderdale — formerly known as the Yankee Clipper — for $126.9 million. The same year, Carlyle sold a 60-acre Fort Lauderdale superyacht facility for $340 million.
Morgan, led by CEO Philip Morgan, is also developing a multifamily project in Sunrise. Last year, city officials approved Caroline at Sunrise, a planned complex with 412 apartments and 40 townhomes on a 21-acre site at 3363 North Pine Island Road. Morgan is setting aside 68 apartments as affordable housing units with below-market rents as part of a development agreement with the city of Sunrise.
South Florida is going through an unprecedented multifamily development boom with a record 23,863 apartments expected to be completed by the end of this year, a recent Berkadia report states. Developers continue to build more rental units even as demand from new residents and rent growth has slowed in recent months.