275 FontaineParc, developed and owned by Marlon Gomez of Gomez Development Group and Emir Dereli of the Dereli Family Office, has sold its’ 133 unit Class A multifamily property to the billion dollar private real estate firm Harbor Group International for a record-shattering $50 million dollars, marking this as the highest price paid per door at $379,939 for a mid-rise apartment complex in western Miami Dade. The property is located at 275 Fontainebleau Blvd. in Miami.
Construction of the property was completed at the beginning of 2020. The 7-story midrise amenities include a community pool, fitness training center and covered parking for its residents. It fully leased up and stabilized over a six month period during the midst of the COVID-19 crisis. It is currently operating at 100% occupancy while achieving some of the highest rental rates for this submarket.
The developer indicated that after carefully considering all the recent market data – the significant cap rate compression trending to sub 3% which had taken place over the past year and the opportunity to gain substantial profits to redeploy into many other projects in its’ pipeline – it made sense that this was the right time to successfully exit this investment.
“FontaineParc was a very special project to us, it is in a great location for long term growth but having the opportunity to generate some of the highest returns this type of asset can achieve for our investment partners and ourselves made this the right financial decision,” said Gomez. “If we were going to sell in this market, it had to be at a premium and that’s exactly what we achieved at $50 million dollars. We believe that development is one of the most profitable and risk adjusted investments for our company. We see the significant difference between project cost and market values and we will continue to create projects in South Florida as the market continues to demand it for years to come. Our firm will be opening our investment fund to others so they may participate in these types of opportunities.”
FontaineParc paid off the existing $27.5-million-dollar loan it had in place with its’ lender Benefit Street Realty Trust, which it placed in October 2020.
In a sign of the times for the insatiable appetite for multifamily properties and not many opportunities such as this one, the buyer executed quickly and consummated the deal without flaw. It was a true pleasure working with such a professional company in HGI the seller said. Representing the seller in this transaction was Holland & Knight, with Westwood Realty Associates and FM Capital facilitating the deal.
Gomez Development recently closed on a $45 million dollar construction loan for a medical office building next to Aventura hospital which is set to break ground this summer and has over 1,100 multifamily units in its development pipeline.
Dereli family office has been the anchor partner with Fort Partners for project such as The Surf Club Four Seasons Hotel & Residences, Ft. Lauderdale Four Seasons Hotel & Residences and The Palm Beach Four Seasons. The office is currently working on The Seaway, the next phase of condominium development North of Surf Club Residences and currently in process to announce its next multifamily development in Overtown with 430 units.
Harbor Group, in a separate closing last month, paid roughly $450 million dollars for the Brightline train station apartments in downtown Miami and $100 million to acquire Doral City Place.
The South Florida market continues on its upward demand trajectory for quality multifamily communities for residents and investors alike.
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