As South Florida surges with demand for multifamily opportunities, Colliers facilitated the sale of a 42-unit multifamily portfolio for $10.5 million on November 16.
The portfolio consists of seven Class C buildings on a 1.33-acre site located at 10710, 10742, and 10752 SW 5th Street in Miami. Colliers Managing Director Mitash Kripalani represented the seller, San Miguel Investments LTD., in the transaction. Colliers Senior Director Virgilio Fernandez represented the undisclosed buyer in the off-market deal.
“Located across the street from Florida International University (FIU), the property is one of the last development sites measuring over an acre in the University Center zoned Sweetwater submarket. Due to scarcity of land and the increasing demand, prices have increased to heights difficult to justify. There is however a lot of supply set to be delivered and even concerns of oversupply in these markets,” said Fernandez. “ The City of Sweetwater recently increased parking requirements for student housing projects which will increase construction costs and make deals harder to pencil.”
The portfolio consists of three adjacent folios built between 1970-1972, which span the entire block with a combined lot size of 57,950 square feet. The properties offer premium positioning across the street from FIU’s main campus, a highly desirable location with strong rental fundamentals and limited development sites remaining nearby. The assemblage features convenient access to the 836 Expressway and Florida’s Turnpike, surrounded by various restaurants, shops, and malls. The income-producing portfolio consists of one-bedroom and two-bedroom units, which provide a risk-reduced opportunity while planning for redevelopment into an apartment or student housing tower.
“With our experience in the FIU submarket, our team accomplished record pricing for our sellers at $250,000 per unit or about $180 per foot for the land,” said Kripalani. “We’ve successfully introduced new-to-market buyers to the area as the desire for additional housing projects in the Miami market soars. The site works well for a future student housing development or a market rate multifamily rental property.”
Florida International University’s Modesto Maidique Campus has an enrollment of approximately 35,000 students driving demand for student housing in the area. To meet demand, there are currently two student housing facilities under construction within a three-mile radius of FIU, adding 1,495 beds to the existing inventory of 9,415 beds. The market asking rent per bed has increased 8.7% year-over-year and 15.3% over the last three years as students desire proximity to campus and living with one another. In addition, occupancy rebounded strongly from a pandemic low of 90.1% in the third quarter of 2020 to 98.2% in the third quarter of 2022.
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