As job growth supports a healthy economy in Southwest Florida, the region is experiencing major population growth, causing a surge in new Class A multifamily construction. The number of new construction Class A units in Southwest Florida has increased by nearly 150 percent year-over-year. In first-quarter 2018, there were 257 Class A units completed, and in first-quarter 2019, that number rose to 622. With this increased supply of Class A properties, there is now more demand in Class B properties among renters, and ultimately from investors. Class B properties tend to have more affordable rental rates, and investors have now noticed the potential for higher investment returns. Illustrating this demand, in the first quarter of 2018 in Southwest Florida, there were 17 Class B properties sold that totaled nearly $39 million. In first-quarter 2019, the sale volume increased to $68 million with nine properties sold. Also, investors were willing to pay more for these assets if they had a value-add component With Class B vacancies being tight at 4.6 percent, investors are making interior and exterior improvements to properties and gradually raising rental rates to increase their returns. For example, a value-add Class B multifamily property in Fort Myers recently …
GAINESVILLE, FLA. — TSCG has brokered the sale of Gainesville Plaza, a 162,000-square-foot retail center situated along NW 13th Street in Gainesville. The center was 92.4 percent leased at the time of sale to tenants including Burlington, Ross Dress for Less, Sav-A-Lot, 2nd & Charles (a Books-A-Million concept), Lumber Liquidators and Hibbett Sporting Goods. The sale also includes a 1.4-acre outparcel fronting 13th Street that can accommodate 4,000- and 3,750-square-foot buildings. Gainesville Plaza was built in 1971 and renovated in 2014. Anthony Blanco of TSCG and his sales team represented the seller, an affiliate of a publicly traded REIT, in the transaction. An affiliate of Wicker Park Capital Management LLC acquired the center for an undisclosed price.
PEMPROKE PINES, FLA. AND NASHVILLE, TENN. — NexPoint Residential Trust Inc. has agreed to buy the 1,520-unit Pembroke Cove Apartments in South Florida for $322 million and the 346-unit Arbors of Brentwood in Nashville for $62.3 million. Pembroke Cove Apartments is situated at 13401 NW 5th St., 24 miles north of downtown Miami. The property offers one- through three-bedroom floor plans. Communal amenities include a swimming pool, hot tub, clubhouse, fitness center, tennis courts, racquetball courts, basketball courts, playground and a billiards room. The community was 96 percent occupied at the time of the agreement. The seller was not disclosed. Arbors of Brentwood is located at 100 Brentwood Place, 10 miles south of downtown Nashville. The complex offers one- through three-bedroom floor plans. Community amenities include a fitness center, three swimming pools, outdoor kitchen, business center, pet park, playground, tennis court and outdoor picnic and grilling area. The seller was not disclosed. NexPoint expects both sales to close by Aug. 30.
ORLANDO, FLA. — Walker & Dunlop has provided a $27.9 million Freddie Mac acquisition loan for Brooke Common Apartments, a 288-unit affordable housing community in Orlando. The borrower is Avanath Capital Management. Half of the units, which are spread out over 38 garden-style buildings, are reserved for those making 60 percent of the area median income (AMI), while 5 percent of the units are reserved for those making 55 percent of the AMI. Brooke Commons Apartments is located 13 miles north of downtown Orlando and offers communal amenities such as a swimming pool, playground, fitness center, volleyball court, business center and a clubhouse. The seller was not disclosed.
JACKSONVILLE, FLA. — A partnership between Balfour Beatty and ApexOne Investment Partners has bought Landings at Lake Gray, a 300-unit apartment complex in west Jacksonville. The property was built in 2005 and offers one-, two- and three-bedroom floor plans averaging 952 square feet. Community amenities include a swimming pool, fitness center, clubhouse, outdoor kitchen and a playground. The buyers plan to immediately renovate the 14-acre property, which will encompass improvements to landscaping and curb appeal, an upgraded amenity package and interior renovations to further modernize kitchens, lighting and flooring. Shelton Granade, Joe Ayers and Cliff Taylor of CBRE represented the seller in the transaction, American Landmark. The sales price was not disclosed.
POMPANO BEACH, FLA. — Bell Partners has acquired Overlook Pointe, a 249-unit multifamily community in Pompano Beach. The Greensboro, N.C.-based investor will rename the community Bell Lighthouse and manage the property. The community offers one-, two- and three-bedroom floor plans. Communal amenities include a swimming pool, barbecue area with grills, fitness center, free Wi-Fi in common areas, coffee bar and a six-story parking garage with 413 spaces. The seller and sales price were not disclosed.
MIAMI — JLL has arranged a $300 million construction loan for the development of 830 Brickell, a 56-story, 1 million-square-foot office tower in Miami’s Brickell district. MSD Partners provided the four-year loan to the developers, a joint venture between OKO Group and Cain International. Located at 830 SE First Ave., 830 Brickell is slated for completion in early 2022. The property is situated next to a MetroMover station, as well as Brickell City Centre, a $1.5 billion, 506,000-square-foot mixed-use development.
MELBOURNE, FLA. — Preferred Apartment Communities Inc. (PAC) has acquired Artistry at Viera, a newly constructed, 259-unit multifamily property in Melbourne. Davis Development delivered the asset in 2018 within Viera, a 22,000-acre, master-planned community being developed by Viera Cos. Artistry at Viera offers one- through three-bedroom floor plans and communal amenities such as a swimming pool, clubhouse, game room, fitness center, media center, movie theater and a business center. The sales price was not disclosed.
DAVIE, FLA. — Cushman & Wakefield has negotiated the $17 million sale of Flamingo Commons, an office campus spanning 81,959 square feet in Davie. Flamingo Commons was 95 percent leased at the time of sale to tenants including Flamingo Commons Dental, Mazzola’s West Italian Restaurant, Shades of Red Salon and The Gordon Group Luxury Cruise Planners. The two two-story buildings and one six-story building were completed between 2002 and 2006. Greg Miller, Miguel Alcivar, Scott O’Donnell, Dominic Montazemi and Mike Ciadella of Cushman & Wakefield, along with Steven Beauchamp from Mangrove Advisory, represented the seller, Flamingo Commons LLC. Miami-based Prive Flamingo LLC Land Banking acquired the property.
While there are mass retail closings around the country, in Miami, there is typically someone waiting on space to become available. Think about it: In Miami, there is actually a shortage of retail space. Uber luxury markets in Miami are performing extremely well with Bal Harbour Shops (owned by Whitman Family Development) being one of the top retail complexes in the country, followed closely by Dadeland Mall and Aventura Mall. These malls are continuously reinvented and expanded, adding various entertainment and diverse dining options to their multi-level retail outlets. The Dolphin Mall, a 1.4 million-square-foot mixed-used complex owned by Taubman Cos., continues to be its No. 1 performing mall in the country, with over 240 retail shops, dining and entertainment venues to choose from including Bass Pro Shops Outdoor World, Cobb Dolphin 19 Cinema, The Cheesecake Factory, Dave and Buster’s, Texas de Brazil, Bloomingdales The Outlet Store, Neiman Marcus Last Call and Saks Fifth Avenue OFF 5th. Miami is cruising There are several factors driving this phenomenon. First, Miami International Airport traffic is setting month-over-month and year-over-year records, according to the Greater Miami Convention and Visitors Bureau. Traffic in February 2019 was 5.7 percent higher compared to February 2018. Cruise …