Davie Apartments Sell for $79M to Denver Group
This is the second major South Florida multifamily acquisition by an out-of-state investor in less than two weeks.
A Denver-based group bought a Davie multifamily community for $79.1 million as investment in South Florida apartments picks up after a cautious phase during the coronavirus pandemic.
Black Creek Group affiliate BCDPF The Palms LLC bought Palms at Davie Apartments on Tuesday from Los Angeles-based CIM Group LLC’s affiliate Palms Owner LLC, according to the Broward County property appraiser’s office.
The 340-unit garden-style Palms is an older property constructed in 1998. It’s 337,557 square feet in a dozen buildings on a 26-acre lot surrounding a lake, according to the appraiser’s office.
The community is on the southeast corner of Interstate 595 and Hiatus Road at 11000 Cameron Court. The transaction breaks down to $232,647 per unit.
Black Creek focuses on industrial, multifamily, retail and office real estate and developed or bought more than $21 billion in assets over 25 years, according to its website.
CIM Group, a real estate owner-operator, developer and lender, was a co-developer of the 43-story, 444-unit Caoba apartment tower at Miami Worldcenter and is working on the mixed-use Wynwood Square in Miami’s Wynwood Arts District. The two eight-story Wynwood Square development will have retail, offices and apartments.
The transaction comes on the heels of another big South Florida apartment deal in which North Carolina-based Bell Partners Inc. bought two adjacent Boca Raton rental complexes for $94.25 million with plans to combine them into one.
On Oct. 26 Bell bought the 180-unit Lumin apartments for $56.5 million from Mainstreet Capital Partners in Fort Lauderdale and the 90-unit Cade townhouses for $37.75 million from Bluerock Real Estate LLC in New York. They will be combined into the 270-unit Bell at Broken Sound.
Unlike Palms at Davie, the Boca Raton communities are much newer after being completed in the past two years.
The pandemic cast a cloud of economic uncertainty on investors and prompted lenders to hit the brakes at least temporarily on commercial real estate financing.
In the first half of the year, 16 South Florida multifamily communities with over 50 units sold for a combined $754 million, down from the first half of last year when 29 properties sold for more than $1.07 billion total.
Whether the Boca Raton and Davie deals signal an extended uptick remains to be seen.
South Florida continues to experience population growth, and hotels, restaurants and other businesses have reopened.
Read more:
‘Wuhan, Florida’: COVID-19 Slashes Commercial Real Estate Deals in Stricken South Florida
Biggest Deals: Dearth of Whoppers as Coronavirus Thwarts Commercial Real Estate Investors