Franklin Street has arranged the sale of a 180-unit value-add apartment community in South Florida for $18.8 million, or $104,444 per unit. The community is located in a federally identified Opportunity Zone in Lauderhill, just outside Fort Lauderdale.
Franklin Street’s South Florida Multifamily Investment Sales Team of Dan Dratch, Greg Matus, Michael Dolgos and Travis Jones brokered the transaction on behalf of the buyer and seller. The buyer is Miami-based real estate investment firm Treevita, which focuses on value-add commercial and multifamily properties. The seller is an affiliate of KVR Properties, an investment and property management firm headquartered in Fort Lauderdale. KVR originally acquired the asset in 2007 and realized a 32 percent appreciation in the property’s value with this sale.
“We have seen significant interest in properties located in Opportunity Zones” said Matus, Senior Vice President of Investment Sales. “The federal program provides investors with significant tax benefits.”
The apartment community is located at 5411 NW 27th St., just west of Florida’s Turnpike, with ease of access to I-95, I-595, I-75 and the Sawgrass Expressway. The property sits on 7.19 acres and consists of 18 two-story buildings totaling approximately 175,500 square feet.
Its 180 units are a mix of 40 one-bedroom/one-bathroom units averaging 800 square feet and 140 townhome-style two-bedroom/1.5-bathroom units averaging 1,000 square feet. All units offer fully equipped kitchens, central HVAC and individual water heaters. Common area amenities include an on-site leasing office, two swimming pools, two on-site laundry facilities and ample parking for residents and their guests.
The property was completed in the mid-1970s and the seller made several interior and exterior upgrades throughout their ownership.
“This asset provides the buyer with the opportunity to complete renovations started by the previous owner and capitalize on the strong rental growth in South Florida,” said Dratch, Director of Multifamily Investments. “Renovated units are achieving an average rent premium of $150/month, representing a nearly 11 percent increase compared to unrenovated units.”
