Hollywood Apartments Fetch $90.3M
Hollywood Apartments Fetch .3M
Pinnacle Housing Group of Miami and Ram Realty Services of Palm Beach Gardens, FL sold Parc Station, a 4-Star apartment community in Hollywood, FL, for $90.28 million, or about $269,000 per unit.
See CoStar COMPS #4081175.
Parc Station Acquisition LLC, a firm tied to a New York-based pension fund managed by JP Morgan, acquired the 336-unit community at 2301 N. 29th St. in Broward County.
The 17-building multifamily complex was built in 2016. Monthly rents for the one-, two- and three-bedroom units range from $1,625 to $2,225, and the vacancy rate is less than 10 percent.
“This is not atypical,” Pinnacle partner David Deutch said of the sale. “This was our intention after we built and stabilized the property.”
Deutch told CoStar News the firm originally planned to build a mixed-use development in 2008 by combining this 14-acre site with an adjacent parcel. But the Great Recession put the project on hold, and the firm wasn’t able to renegotiate lease terms with Florida Department of Transportation, which owned the second site.
Last week, Pinnacle and another firm, Ascend Properties, broke ground on Oasis at Blue Lagoon, a 272-unit apartment complex at 6650 NW Seventh St. in Miami, FL. The site is next to the Blue Lagoon commercial park.
Parc Station was the first 4-Star apartment development to open in the Hollywood / Dania Beach submarket in five years, CoStar analysis shows. The area offers lower rents than downtown Fort Lauderdale or western suburb Pembroke Pines.
“As a result, vacancies have remained below the metro average and rent growth has performed well relative to the metro,” according to CoStar Market Analytics covering the Hollywood / Dania Beach submarket on Oct. 3. “The area is home to multiple large mixed-use projects in all stages of the pipeline and could soon attract residents in droves when these major developments begin to deliver.”
Multifamily sales remain strong across South Florida, though the number of sales transactions and total sales volume in 2017 aren’t likely to eclipse the 755 and $6.3 billion of 2016, CoStar data shows.
Projected increases in household formations and millennials’ preference to remain mobile are likely to make multifamily sales a strong investment during the next few years, analysts say.
Source: Hollywood Apartments Fetch .3M