MIAMI—Sometimes multifamily deals are inked with the future in mind. That's the case with The Chalet Apartments, a 20-unit multifamily property located in Hialeah, FL. The asset traded for $2 million but could be worth much, much more in the years ahead.

“The buyer saw the future potential of the property and its upside value due to its location two blocks west of the Hialeah Race Track, which is undergoing a $100 million dollar renovation,” says Hernando Perez, an associate at Marcus & Millichap. Perez, along with Tal I. Frydman, a vice president of Investments and Daniel J. Cunningham and Derek R. Gibbs, senior associates, all in the firm's Ft. Lauderdale office, had the exclusive listing to market the property on behalf of the seller, a private investor from Cooper City, FL.

“The development will revitalize the area by bringing new employers, shops and restaurants,” Perez says. “The investor paid $100,000 per unit or $155 per square foot at a 5.6% cap rate of return. This transaction has set a milestone in the Hialeah real estate market.”

The Chalet Apartments offers one two-story building with eight two-bedrooms/one -bathroom units and 12 one-bedroom/one-bathroom units. The multifamily asset is located at 195 West 25th Street in Hialeah, FL. Jorge Ruiz, an associate, and Arthur D. Porosoff, a vice president of Investments, both in M&M's Miami office, represented the buyer.

“Over the past decade Hialeah has seen its inventory of rental apartments reduced due to condo conversions,” Perez says. “The reduction in supply has improved the fundamentals of this already strong rental market. In properties where the landlords have actively raised rents, they have met with little to no resistance. The strength of the market is further evidenced by the fact that vacancy is virtually non-existent and concessions are unheard of making Hialeah one of the best rental markets in Miami-Dade County.”