FORT LAUDERDLAE, FL—Arthur Street Apartments, a 20-unit multifamily asset in Hollywood, FL, is one earmark of a trend. According to Marcus & Millichap, investor demand for multifamily in this Fort Lauderdale suburb is surging.

M&M senior associates Derek R. Gibbs and Daniel J. Cunningham, along with vice president of Investments Tal I. Frydman in the firm's Ft. Lauderdale office, represented the seller, a limited liability company from Hallandale, FL. The trio, and M&M associate Hernando Perez, also represented the buyer, a private investor from Hollywood.

“We are seeing demand, as well as prices, for apartment buildings in Hollywood increase, especially for stabilized properties with strong cash flow,” says Gibbs. “Properties in the five to 50 unit ranges typically sell to investors from Broward and Miami-Dade County, who have the local infrastructure to support the management intensity of operating a multifamily property. These owners are typically looking to hold and operate the properties as long-term investments which will help the improving market as these investors will take better care of the properties and cover the expenses that come with the fruits of the cash flow.”

Located at 6051 Arthur Street, the multifamily building is two stories and sits on a .81-acre lot. The multifamily property sits just north of Hollywood Boulevard and just east of the Florida Turnpike, within minutes of Interstate 95 and US 441. Arthur Street Apartments sold for $1.33 million.

“The buyer purchased the property to replace the income from a building he had recently sold,” says Gibbs. “The buyer's investment model is based on a long term hold, a hedge against the risk of inflation, cash flow and management. The property traded quickly with a bank loan at market rate and terms.”