- 17 Jul
South Florida Apartment Complex Sales Soar in Second Quarter
Buyers and investors from outside Florida are taking a special interest in apartment complexes within the Miami area, evidenced by the large amount of properties that have changed hands in the last quarter. Within the last three months, at least 11 apartment communities in the area have been sold to new investors. Each of these purchases has gone for a minimum of $49M and the total value of the buildings that have been sold is just below $1B.
Real estate professionals point to the increasing population and stable job growth as prime factors for the high number of purchases. Within Miami-Dade, Broward, and Palm Beach counties, employment is up between 2 and 3 percent, as close to 20,000 jobs were added within the Miami area alone. The rise in employment has also led to an increase in rentals, As the Miami area rental rate increased by 7 percent on average.
The largest purchase was the sale of the Montage at City Center for a total of $149M. The apartment contains over 700 units and signaled a jump in sales after a weak first quarter. Other recent complex sales include the Aviva Coral Gables, purchased by the Berkshire Group in Boston for approximately $100M, and the nearby Milagro apartments, bought for $78M by a New York firm named Wafra Investments Advisory Group Inc.
Miami-Dade county specifically saw three deals made within two months, including the purchase of the Laurels at Jacaranda by TH Real Estate for $93M.
Apartments are expected to continue to rise across the South Florida area as builders see plenty of demand for multifamily residential complexes. Approximately 15,500 units are estimated to be built in 2017, most in the Miami area.
About the Author