Phoenix Realty Group bought an apartment complex for $64.8 million, marking the latest South Florida multifamily trade as the market muscles its way back.
While inflation and elevated interest rates have affected investment sales, leasing is also clawing its way back in after years of oversupply.
New York-based Phoenix bought the 269-unit Bay Pointe Apartments building at 18422 Homestead Avenue in an unincorporated area of south Miami-Dade County from an entity tied to Pride Homes by Garco, according to records and real estate database Vizzda. The deal breaks down to $240,892 per apartment.
Phoenix Realty assumed the seller’s $55.2 million loan on the property from Corebridge Institutional Investments.
The seven-story building was completed in 2024 on a 2.4-acre site, according to property records. It consists of 134 one-bedroom apartments, 129 two-bedroom apartments, six three-bedroom apartments and 3,700 square feet of retail.
Led by Keith Rosenthal and Ron Orgel, Phoenix has made other South Florida multifamily investments. In 2022, the firm partnered with Park Row Equity Partners and two other New York-based entities in the $69.5 million purchase of the Park Colony Apartments at 812 South Park Road in Hollywood. Phoenix also paid $69.7 million in 2018 for the 408-unit, 17-acre development at 7900 Hampton Boulevard in North Lauderdale.
Phoenix’s investment in South Florida dates back a decade, as it also bought the 300-unit apartment complex at 10101 Southwest 101 Way in Broward County for $52.7 million in 2015.
Although South Florida multifamily sales picked up this year – totaling $2.5 billion in the first half of the year, a 19.4 percent increase from the same time period last year, per Avison Young – brokers caution not to get too excited. Some of these deals could have been under contract late last year and only closed early this year. Plus, the higher interest rates and more expensive costs overall are still playing a role.
Apartment leasing struggled with a nagging oversupply over the past three years, only alleviating in recent months. In the 12 months ending in the second quarter, new leasing reached 13,774 units, edging past the 12,751 units completed, according to CoStar Group data.
Still, the supply-demand balance could get upended again, as nearly 28,000 units are under construction, many of them expected to deliver late next year, CoStar data shows.
In other recent multifamily sales, Fairfield Residential bought the 812-unit Portofino Place Apartments at 4400 and 4600 Portofino Way in West Palm Beach for $208 million last month.
Also, Harbor Group International beefed up its South Florida portfolio last month with a $109 million purchase of the over 500-unit Emerald Palms, at 12315 Southwest 151st Street in unincorporated Miami-Dade County, near Zoo Miami.
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