As sales volumes continue to grow, the supply of Class A multi-family
properties in South Florida is dwindling, causing some investors to
change their buying habits.
Bidding on Class A apartment properties is so competitive, some buyers are looking at deals on lesser-quality apartment buildings, industry experts say.
"More and more, institutions are looking at B quality (multi-family) assets," Still Hunter, Marcus & Millichap senior vice president told World Property Channel. "Although REITs may not be buying these properties, people with institutional money, such as (money) coming from pension fund advisors, are buying B quality assets, because of the lack of Class A inventory."
One such deal is the $41.5 million sale ($131,000 per unit) in February
of the 316-unit Park Colony Apartments in Hollywood, Florida, Mr. Hunter
says. The seller was a company that the Boston-based Berkshire Property
Advisors manages and the buyer was a group managed by Andrew De
Francesco, chairman and chief executive of Delavaco Capital, a private
equity and merchant banking group.
Overall, the South Florida multi-family market continues to thrive at levels not seen since before the recession, according to the CBRE Multi-Housing Market Update for spring 2013. In 2012, there were $490 million in sales of South Florida properties in the $1 million to $10 million range with a total of more than 13,700 units. It was the highest sales volume for multi-family properties in South Florida in the last five years, CBRE reports.
This surge in multi-family investment in South Florida has continued into 2013, according to multi-family specialists.
Bidding on Class A apartment properties is so competitive, some buyers are looking at deals on lesser-quality apartment buildings, industry experts say.
"More and more, institutions are looking at B quality (multi-family) assets," Still Hunter, Marcus & Millichap senior vice president told World Property Channel. "Although REITs may not be buying these properties, people with institutional money, such as (money) coming from pension fund advisors, are buying B quality assets, because of the lack of Class A inventory."
One such deal is the $41.5 million sale ($131,000 per unit) in February
of the 316-unit Park Colony Apartments in Hollywood, Florida, Mr. Hunter
says. The seller was a company that the Boston-based Berkshire Property
Advisors manages and the buyer was a group managed by Andrew De
Francesco, chairman and chief executive of Delavaco Capital, a private
equity and merchant banking group.Overall, the South Florida multi-family market continues to thrive at levels not seen since before the recession, according to the CBRE Multi-Housing Market Update for spring 2013. In 2012, there were $490 million in sales of South Florida properties in the $1 million to $10 million range with a total of more than 13,700 units. It was the highest sales volume for multi-family properties in South Florida in the last five years, CBRE reports.
This surge in multi-family investment in South Florida has continued into 2013, according to multi-family specialists.
0 comments:
Post a Comment