A group of Israeli and U.S. investors acquired 72 units at billionaire Adam Neumann’s Flow House at Miami Worldcenter condo project.
The investors paid a combined $45 million for the condos, which represent about 15 percent of the 40-story, 466-unit building at 697 North Miami Avenue, according to a news release. Pulse International’s Rena Kliot arranged the deals. 4everLending USA Founder Behnood “Ben” Dalaei and CEO Nezha “Nez” Elabbassy CEO arranged the financing. Elabbassy said the financing totaled $32 million, and she declined to identify the lender.
The sales were complicated, Kliot and Elabbassy said. Kliot prearranged the deals and then found buyers to purchase units via the platform Markondo. Both Kliot and Elabbassy said that demand is strong for condos investors can rent out themselves or enter into a leaseback program, which is an option at Flow House.
The short-term rental friendly tower includes furnished studios and one-bedroom and two-bedroom units. Amenities include a pool, fitness center, spa facilities, cafes, coworking spaces, a game room and a podcasting room.
“People have a lot of faith and confidence in the South Florida market and they feel they can buy in multiples again,” Kliot said.
The group of 72 unit sales breaks down to an average price of $625,000. Kliot said the sales were not a bulk deal because they closed on separate days over the course of a month to different buyers.
Elabbassy called the group investment an Israeli cultural concept, where multiple investors pitch in and are able to get a discount on the overall purchase.
“Because we were able to successfully close it, other investors are watching, and we’re in the process of doing another deal,” she said.
Neumann’s Flow, the residential real estate-focused firm he began in 2022, was expected to focus on rental projects that foster community, and Flow House at Miami Worldcenter was also originally planned as rentals. Neumann’s firm launched it as a condo project in the fall of 2024, and last year secured a $155 million construction loan for the building. Unit prices started at $450,000.
When fully built, Miami Worldcenter will have 16 residential and hotel towers. In April, Nitin Motwani and CIM Group sold their stake in the retail and entertainment component, with Art Falcone staying in the deal to a partnership that includes ROK Acquisitions, Andrew Mirmelli, The Davis Companies and Jamestown. The joint venture paid $210 million for five parcels and two garages.
A number of other short-term rental friendly condo projects have either been recently completed in downtown Miami or are in the pipeline. Foreign investors, especially from Latin America, have traditionally flocked to that type of project because it allows them to generate income while owning real estate in the U.S.
Read more
Development
South Florida
Welcome to Neumannville? Flow’s plans in El Portal incite local ire