Multi-Housing Transactions in Q4 2012 Show Sustained Velocity in Investment Activity by Private Capital Buyers
Pompano Beach, FL – February 7, 2013 – (RealEstateRama) — Local private capital group Orchid Grove Holdings, LLC closed on the sale of 54 townhomes within Orchid Grove located at 649 South Cypress Road, Pompano Beach, Florida. The townhomes were purchased by a private capital group, 1370 S. Ocean, LLC, for $11 million ($203,704 per unit or $94 per square foot.) CBRE’s Multi-Housing Private Capital Group in South Florida represented the seller, Orchid Grove Holdings, LLC, a local private capital group.
Several high ticket apartment community sales were announced at the end of 2012, but domestic and foreign capital are just as active with the smaller multi-housing opportunities between $1 to $15 million. The CBRE Private Capital Group has completed seven multi-housing multi-housing sales in a 90-day period totaling over $28 million on behalf of private investors in South Florida.
“Investors are drawn in by South Florida’s impressive +95% occupancy rates and record-high rental rates,” stated Calum Weaver, Director of Operations for CBRE’s Private Capital Group. “In addition, new lending sources opened up in the last 18 months to provide attractive new debt solutions in the $1 to $10 million deal size. Terms vary based on the buyer, but it’s common to see ±75% leverage at a low 4% interest rate.”
Weaver expects similar activity for 2013 and 2014; “Though more than 10,000 units are expected for delivery in the next 24 months, there were a net of 60,000 apartment units converted to condominiums in the last real estate cycle. South Florida’s population growth will continue to spur positive absorption and strong occupancy rates. These strong market fundamentals coupled with attractive debt solution translates into continued investor demand.”
In 2012, the CBRE Private Capital Group completed 21 multi-housing sales in South Florida on behalf of private investors, the majority of which were sold to foreign-based private investors.
The seven deals closed by CBRE’s Private Capital Group in the last 90 days include:
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Orchid Grove, Pompano Beach – 54 townhomes purchased for $11,000,000 ($203,704 per unit or $94 per sq. ft.) Closed February 5th
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7609-7617 Carlyle Avenue, 7635 Dickens Avenue, and 531 76 Street – 31 units purchased ($106,710 per unit or $161 per sq. ft.) Closed February 1.
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Hollywood Central Beach, Hollywood – land purchased for $4,650,000. Closed January 4th
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625 Santander, Coral Gables – 16 units purchased for $2,500,000 ($156,250 per unit or $178 per sq. ft.) Closed December 28.
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925-965 Marseille Drive, Miami Beach – 27 units purchased for $2,607,000 ($96,556 per unit or $149 per sq. ft.) Closed December 17.
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Nassau Village, North Miami – 60 units for $3,200,000 ($53,333 per unit or $57 per sq. ft.) Closed November 15
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Park Place, West Palm Beach – 23 units for $1,225,000 ($53,261 per unit or $113 per sq. ft.) Closed Oct 25.
Weaver, based in Miami and Ft. Lauderdale, is a member of the CBRE South Florida Multi-Housing Private Capital Group. He and team member Richard Tarquinio specialize in selling apartment properties between $1 to $20 million in the South Florida market.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2011 revenue). The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.
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