Institutional investors are diving into South Florida head first, paying major market prices for institutional-grade assets. This includes the Deutsche Asset & Wealth Management acquisition of Bank of America Plaza in September and the Red Sky Capital/Clark Estate acquisition of the Esperante Corporate Center early in the quarter. (Source: Savills Studley)

NEWS & NOTABLES

WESTON, FL—Florida Community Bank provided a $67.5 million credit facility to refinance Rybovich, owned by Rybovich Boat Company, which is a 69-slip, mega yacht marina and repair facility in West Palm Beach with the largest lift capacity of any marina in South Florida. Rybovich Boat Company is controlled by Huizenga Holdings. The credit facility consists of a $65 million term loan used to refinance the property's existing debt and a $2.5 million line of credit.

DEAL TRACKER

NORTH MIAMI BEACH, FL—Marcus & Millichap brokered the sale of 1870 Northeast 161st Street, a five-unit apartment property in North Miami Beach. The asset sold for $520,000. Harrison Rein, associate, Felipe J. Echarte, vice president Investment, and Evan P. Kristol, senior vice president Investment represented the seller, a private investor. Fulford Apartments is located at 1870 Northeast 161st Street. The property is positioned in a central location that should continue to see occupancy and rental rates improve.

MELBOURNE, FL—Passco Companies acquired Marisol at Viera, a 282-unit class A luxury multifamily asset in Melbourne for $50.25 million. The multifamily community is located within Viera, a high-end 22,000-acre master planned community on the east coast of Florida that features a variety of retail, restaurants, office space and residential options. “This is Passco's first acquisition on the Space Coast, and we are especially excited as the market is a top performer in the state of Florida, with year-to-date rent growth leading the state with nearly 10%, according to MPF,” says Colin Gillis, vice president of Southeast Acquisitions at Passco. “This is more than double the national average. Additionally, occupancy rates across the submarket are well into the high 90's with only one multifamily project in the development pipeline.”

HOLLYWOOD, FL—Levy Realty Advisors' broker and president Alan Levy represented the buyer, CJ Partners Hollywood, in the purchase of The Wartsila Building, an 81,922-square-foot high-tech warehouse and manufacturing facility located at 2900 Southwest 42nd Street in Hollywood. Cushman & Wakefield's Dominic Montazemi, Greg Miller, and Scott O'Donnell represented the seller Hanseatic Land Trust. The commercial real estate asset sold for $13.7 million. “The principals were attracted to the long-term stability of the highly sought after Port 95 industrial submarket due to its close proximity to the Fort Lauderdale / Hollywood airport, Port Everglades, and the Interstate 595/Interstate 95 corridor for class A industrial properties with credit tenants, which was reflected in the acquisition price,” says Levy.

KISSIMMEE, FL—FM Capital acquired Cambria at Polos South, a multifamily community in Kissimmee, for $18.17 million. The property has 196 units on 11.9 acres and is located about half an hour south of Downtown Orlando. John Stone, managing director of Multifamily Investment Sales for Colliers International Tampa Bay, represented the seller in the transaction, KISS BH18 LLC. “This well-positioned multifamily property presents a significant value-add opportunity, but the complexities associated with the fractured condo units limited the buyer pool,” says Stone. “FM Capital had the experience and capability necessary to smoothly complete this transaction.”

BUILDING BLOCKS

MARGATE, FL—Housing Trust Group closed on financing and commenced construction on a new $25 million, 100-unit senior housing community in Margate. The affordable community, located at 3100 North State Road 7, is slated for delivery in the first quarter of 2018. HTG acquired the 2.5-acre vacant tract to develop Arbor View for $2.75 million. Funding sources for the development include a $17.7 million construction loan from TD Bank; a $3.5 million loan from non-profit Neighborhood Lending Partners, which will convert to a permanent loan; and over $19 million of 9% Low Income Housing Tax Credit equity purchased by Raymond James Tax Credit Funds. Arbor View will consist of 64 one-bedroom apartments and 36 two-bedroom apartments, ranging from 715 to 915 square feet. Arbor View's resort-style amenities, typical of market rate luxury communities, include a swimming pool, dog park, shuffleboard courts, computer lab, community room, fitness trail, and state-of-the-art fitness center.

Big capital deals inking in Florida even as new construction gets underway on the housing front. The Space Coast and Broward County are seeing their fair share of action these days.

BY THE NUMBERS

New tenants seeking class B office space at a value have descended on Cypress Creek/Fort Lauderdale, as the submarket attracted three of the 10 largest transactions of the third quarter of 2017. Even with this activity, the submarket as the second highest availability rare in the region at 23.1%. (Source: Savills Studley)

Institutional investors are diving into South Florida head first, paying major market prices for institutional-grade assets. This includes the Deutsche Asset & Wealth Management acquisition of Bank of America Plaza in September and the Red Sky Capital/Clark Estate acquisition of the Esperante Corporate Center early in the quarter. (Source: Savills Studley)

NEWS & NOTABLES

WESTON, FL—Florida Community Bank provided a $67.5 million credit facility to refinance Rybovich, owned by Rybovich Boat Company, which is a 69-slip, mega yacht marina and repair facility in West Palm Beach with the largest lift capacity of any marina in South Florida. Rybovich Boat Company is controlled by Huizenga Holdings. The credit facility consists of a $65 million term loan used to refinance the property's existing debt and a $2.5 million line of credit.

DEAL TRACKER

NORTH MIAMI BEACH, FL—Marcus & Millichap brokered the sale of 1870 Northeast 161st Street, a five-unit apartment property in North Miami Beach. The asset sold for $520,000. Harrison Rein, associate, Felipe J. Echarte, vice president Investment, and Evan P. Kristol, senior vice president Investment represented the seller, a private investor. Fulford Apartments is located at 1870 Northeast 161st Street. The property is positioned in a central location that should continue to see occupancy and rental rates improve.

MELBOURNE, FL—Passco Companies acquired Marisol at Viera, a 282-unit class A luxury multifamily asset in Melbourne for $50.25 million. The multifamily community is located within Viera, a high-end 22,000-acre master planned community on the east coast of Florida that features a variety of retail, restaurants, office space and residential options. “This is Passco's first acquisition on the Space Coast, and we are especially excited as the market is a top performer in the state of Florida, with year-to-date rent growth leading the state with nearly 10%, according to MPF,” says Colin Gillis, vice president of Southeast Acquisitions at Passco. “This is more than double the national average. Additionally, occupancy rates across the submarket are well into the high 90's with only one multifamily project in the development pipeline.”

HOLLYWOOD, FL—Levy Realty Advisors' broker and president Alan Levy represented the buyer, CJ Partners Hollywood, in the purchase of The Wartsila Building, an 81,922-square-foot high-tech warehouse and manufacturing facility located at 2900 Southwest 42nd Street in Hollywood. Cushman & Wakefield's Dominic Montazemi, Greg Miller, and Scott O'Donnell represented the seller Hanseatic Land Trust. The commercial real estate asset sold for $13.7 million. “The principals were attracted to the long-term stability of the highly sought after Port 95 industrial submarket due to its close proximity to the Fort Lauderdale / Hollywood airport, Port Everglades, and the Interstate 595/Interstate 95 corridor for class A industrial properties with credit tenants, which was reflected in the acquisition price,” says Levy.

KISSIMMEE, FL—FM Capital acquired Cambria at Polos South, a multifamily community in Kissimmee, for $18.17 million. The property has 196 units on 11.9 acres and is located about half an hour south of Downtown Orlando. John Stone, managing director of Multifamily Investment Sales for Colliers International Tampa Bay, represented the seller in the transaction, KISS BH18 LLC. “This well-positioned multifamily property presents a significant value-add opportunity, but the complexities associated with the fractured condo units limited the buyer pool,” says Stone. “FM Capital had the experience and capability necessary to smoothly complete this transaction.”

BUILDING BLOCKS

MARGATE, FL—Housing Trust Group closed on financing and commenced construction on a new $25 million, 100-unit senior housing community in Margate. The affordable community, located at 3100 North State Road 7, is slated for delivery in the first quarter of 2018. HTG acquired the 2.5-acre vacant tract to develop Arbor View for $2.75 million. Funding sources for the development include a $17.7 million construction loan from TD Bank; a $3.5 million loan from non-profit Neighborhood Lending Partners, which will convert to a permanent loan; and over $19 million of 9% Low Income Housing Tax Credit equity purchased by Raymond James Tax Credit Funds. Arbor View will consist of 64 one-bedroom apartments and 36 two-bedroom apartments, ranging from 715 to 915 square feet. Arbor View's resort-style amenities, typical of market rate luxury communities, include a swimming pool, dog park, shuffleboard courts, computer lab, community room, fitness trail, and state-of-the-art fitness center.