Marlin Spring Sells Rentals to IMC Equity ata 24% Discount

IMC Equity Group bought a Princeton apartment complex for nearly 24 percent less than its sale price four years ago, as the investment firm capitalizes on distress in South Florida.

North Miami-based IMC Equity, led by Yoram Izhak, bought the 204-unit garden-style Pine Groves at 24101 South Dixie Highway in unincorporated Miami-Dade County from an entity led by Elliot Kazarnovsky of Toronto-based Marlin Spring Developments, according to records.

IMC Equity borrowed a $27.8 million loan from Wells Fargo for the purchase and property.

Completed in 2020, Pine Groves consists of four three-story buildings and a clubhouse on a nearly 6-acre lot, property records show. It has one- and two-bedroom units, with monthly rents ranging from $1,635 to $1,925.

The Kazarnovsky-led entity, which is in the care of Marlin Spring US Realty, bought Pine Groves from the developer in 2021 for $44 million.

The discounted sale comes amid higher interest rates, increases in other costs and a slower South Florida multifamily market compared with the pandemic-induced boom.

The elevated rates have translated to higher debt obligations for landlords with floating-rate loans and more expensive refinancing for those with maturing loans. At the same time, South Florida has experienced skyrocketing insurance premiums and stabilizing though still-high costs for labor and materials.

Meanwhile, demand for rentals has cooled. After South Florida became a magnet for out-of-staters, creating unprecedented apartment demand and record rent growth, developers rushed to build multifamily. They completed a record 18,600 units last year, outpacing net leasing, just as the influx of residents slowed, prompting a decrease in rents and an increase in concessions.

Some multifamily properties have traded at a discount. In September, Waterton Residential sold the 427-unit District West Gables complex at 2001 and 2101 Ludlam Road/Southwest 67th Avenue in West Miami for $111 million, a 4.7 percent discount from what it had paid nearly a decade ago.

IMC Equity is among the firms seizing on the distress playing out in multifamily and other property types. It bought the 515,000-square-foot Sawgrass Technology Park in Sunrise for $49 million in 2024, marking a 34 percent discount from its 2019 price. It also bagged the Miracle Marketplace at 3301 Coral Way in Miami in 2024 for $62 million, or 32.6 percent less than the retail center’s price over a decade prior.