19 Regional Multifamily Sales Top $10M in Q2

MIAMI-Southeast Florida had the greatest number of multifamily sales more than $10 million of any region in the state in the second quarter, according to a report recently released by locally based Madison-LaPaul.The region had 19 of the state’s 50 total sales. Those 19 properties sold for a total of nearly $1.1 billion and have 7,374 units combined. This is a significant portion of the approximately $1.8 billion in 16,684 units sold statewide. The average price per unit in Southeast Florida increased to $145,090–much higher than the state average of $107,385 for the period–attributable to strong activity among condominium converters.”Converters are still aggressively targeting assets throughout Florida,” where converters bought 21 properties in the second quarter, the report states. “Conversion activity was particularly strong in South Florida.” There, 14 of the properties sold, including the four that went for more than $100 million, went to converters.Douglas E. Driver, vice president of Madison-LaPaul in Miami, calls the level of condo conversions in South Florida “a huge amount.” He says, “The underlying reason is there’s an arbitrage between the condo market and the rental market. That’s a lot driven by interest rates…and the demand for housing in South Florida.”

The Southwest Florida multifamily market also experienced strong sales. In that area, 2,880 units in nine properties traded hands for a combined $242 million in the second quarter. The average price per unit was lower than the state average, at $84,065.South Florida was also home to the biggest sale of the quarter, based on total sales price. Condo converter Crescent Heights acquired the 1,342-unit, 94%-occupied Mirador rental complex in Miami Beach for $190 million, or $141,579 per unit.Southeast Florida also had the sale with the highest price-per-unit. The 180-unit Centergate Aventura in Miami-Dade County sold for $222,222 per unit, or a total of $40 million. Following that property was the 703-unit Bay Club Tower, also in Miami-Dade County, which sold for $202,702 per unit, or $142.5 million.Also, according to the report, four out of five second-quarter acquisitions by institutional buyers occurred in South Florida. Two of these were in the Southeast region, Reserve at Ibis Apartments and Estates at Wellington Green, both in Palm Beach County. The other two were in the Southwest region, Madison at Brantley Pines and Madison at the Ashlar in Lee County.