$49M Sale Fuels Condo Conversion

MIAMI-Local condominium converters and a Canadian developer have purchased Village at Dadeland, a 410-unit apartment community in the city, for $48.5 million and plan to convert it into a condo community.Village at Dadeland is located behind Dadeland Mall and near the intersection of Kendall Drive and US Highway 1. It consists of 37 two-story buildings on 20-plus acres and the units range in size from 780 sf to 1,350 sf. The condo converters, Robert Wolfarth and his son Robert Wolfarth Jr., purchased the property with Canadian developer Nathan Reiber and local attorney Mark Meland. The seller, Jacobson Toccin Properties, owned the property–which was built in 1968–for 30 years.Jay H. Massirman and Charles Crapse were the exclusive advisers to Jacobson Toccin Properties of Miami. “They just wanted to take advantage of the unique time in the market right now, with demand for conversions being what it is,” says Crapse. Interest rates have had something to do with this. But, he adds, “I think in Miami-Dade County, I think it’s the lack of single-family development as much as anything. Probably three out of every four deals that we sell right now end up going to converters.”The condo units probably will begin selling in the $150,000 to $200,000 range, he says. “And single-family homes in that area are probably $400,000.”LJ Melody & Co., CB Richard Ellis’ investment banking subsidiary, arranged $46.2 million in purchase financing through Ocean Bank on behalf of Village at Dadeland Associates LLC. Kevin O’Grady, director, and Dan Sheehan, vice president of LJ Melody’s Miami office, arranged the senior financing for the deal.More than 2,000 luxury units are under construction in that area, with more in the planning stages, according to Massirman, executive vice president of CB Richard Ellis. “This area is similar to Buckhead in Atlanta–prime demographics, center of Miami-Dade County affluence and every conceivable area amenity, including retail, office and public transportation,” he says in a statement.

Crapse adds, “The conversion will allow future residents the opportunity to experience urban in-fill living at a strategic price point.”