A pair of developers scooped up two separate multifamily project sites, as South Florida construction costs stay elevated and the region has barely emerged from years of oversupply in the rental market.
In the bigger deal, an affiliate of Brickell-based North Development paid $32.8 million for the 0.6-acre lot on the northwest corner of North Bayshore Drive and Northeast 21st Street in Miami’s Edgewater, according to property records and real estate database Vizzda. The lot is immediately west of the Biscayne 21 condominium that was the subject of a protracted legal battle until recently between holdout unit owners and the firm planning to redevelop the building.
North Development is a partnership between Ricardo Dunin’s Oak Capital and Peruvian development and fund management firm Edifica. North’s founding partners include Dunin, Juan Carlos Tassara, Eduardo Vargas, Arturo Vidal, Jorge Ruiz and Martin Bedoya.
The seller was an entity that’s a partnership among Dallas-based Mill Creek Residential, TPG Equity REIT and UBS Realty Investors. The entity had paid $8 million for the property.
The sellers previously planned a 31-story, 275-unit apartment tower with an eight-level, 363-space garage, according to Vizzda records.
In the smaller deal, Wells Fargo Bank sold the 3.2-acre, two-lot assemblage at 2400 East Atlantic Boulevard in Pompano Beach to Atlanta-based Portman Holdings, according to records and Vizzda. The buyer borrowed $7.4 million from United Bank.
Last year, Portman scored approval for an eight-story, 397-unit apartment building on the property.
Portman, an investment, development and management firm with about $5 billion in assets under management, is led by Ambrish Baisiwala.
The deals come as South Florida’s multifamily market has shown signs of revival after a three-year oversupply. In the pandemic-era, defined by an influx of out-of-staters that created unprecedented rental demand, developers jumped on building apartments, delivering a record of 18,500 units in 2024. Over the past three years, net deliveries consistently surpassed net leases.
New leasing reached 13,774 units in the year ending in July, edging just past the 12,751 units completed, according to CoStar Group. Still, the delta is small, and with another 28,000 units on tap and mostly expected to be completed late next year, market analysts warn another period of oversupply may be in store.
This market saturation is defined by slower leasing, more concessions and a decrease in rents. According to Realtor.com’s September report, South Florida’s median asking rent hit $2,285 per month, or a 1.3 percent decrease, year-over-year, marking continued monthly declines.
Read more
Over 300 affordable units on tap in Brownsville, Naranja amid market-rate multifamily glut
LeCesse scoops up $18M Deerfield Beach dev site as city weighs easing restrictions
Merrimac greenlit for downtown Fort Lauderdale resi towers as demand surges
