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Multifamily Complex Sells at 46% Gain In Less Than Four Years

MIAMI—“This is a unique animal in the multifamily sector, as it's one of many failed condo conversions from the run up to the 2008 crash.”

By Jennifer LeClaire | jenniferleclaire | | Updated on August 09, 2016
Two hundred twenty-two units at Jasmine at Tamarac, a multifamily home complex with one- and two-bedroom units, has traded hands. Two hundred twenty-two units at Jasmine at Tamarac, a multifamily home complex with one- and two-bedroom units, has traded hands.
MIAMI—Two hundred twenty-two units at Jasmine at Tamarac, a multifamily home complex with one- and two-bedroom units, has traded hands. JAT Owner acquired the asset for $22 million, or $99,099 per unit. That’s nearly a 46% gain in less than four years. Ronald Meyerson , senior vice president of multifamily sales at Milo Real Estate , negotiated the sale. Elandis acquired the 222 multifamily units, representing the majority of the 291-unit community, in December of 2012 for $15 million. Originally built in 1987 as a multifamily complex, Jasmine at Tamarac underwent a condominium conversion and renovation program in 2006. The remaining 69 units are privately owned. “This is a unique animal in the multifamily sector, as it’s one of many failed condo conversions from the run up to the 2008 crash,” Meyerson tells GlobeSt.com. “In addition, not many multifamily buyers want fractured deals. It takes a knowledgeable buyer to both buy and operate them as well as an educated broker to put the parties together.” Fractured condos are fewer and further between. Further north, the Element at MetroWest, a 301-unit class A fractured condominium community in Orlando, recently traded hands. The sale price: $34.9 million, or $115,947 per unit. The Cushman & Wakefield  multifamily  brokerage team of executive director  Jay Ballard  and senior director  Ken Delvillar  represented a joint venture of Miami-based  TM Real Estate Group  and Calgary-based  Optimus US Real Estate Fund  in the sale. New York-based  Phoenix Realty Group  (PRG) acquired the  multifamily  asset. “The Element at MetroWest was one of the few remaining fractured condo assets in Central Florida and provided investors with an incredible value-add opportunity,” Ballard tells GlobeSt.com. “New ownership will be able to capitalize on its location in one of Orlando’s top submarkets through a continued capital improvement campaign on unit interiors and amenities, which should result in substantial rent increases.” Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What’s driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

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