Phoenix Realty Group has acquired the 269-unit Bay Pointe Apartments in South Miami-Dade County for $64.8 million, adding a newly completed rental community to its Florida portfolio. The transaction underscores renewed investor interest in South Florida multifamily properties, even as borrowing costs, development expenses and a large construction pipeline continue to temper optimism.
Key takeaways
- Phoenix Realty paid approximately $240,892 per apartment for Bay Pointe Apartments.
- The seven-story community was completed in 2024 and includes 269 apartments and 3,700 square feet of retail space.
- Phoenix assumed a $55.2 million loan tied to the property.
- South Florida multifamily sales reached $2.5 billion in the first half of the year, up 19.4% from the same period a year earlier.
The acquisition expands Phoenix Realty’s presence in South Florida and reflects the firm’s willingness to invest despite a market still adjusting to higher interest rates and increased operating costs.
Details of the Bay Pointe acquisition
The New York-based firm bought Bay Pointe Apartments at 18422 Homestead Avenue from an entity connected to Pride Homes by Garco, according to property records and real estate database Vizzda. The property sits on 2.4 acres in an unincorporated area of South Miami-Dade County.
Completed in 2024, the seven-story building contains 134 one-bedroom units, 129 two-bedroom units and six three-bedroom units. Its retail component totals roughly 3,700 square feet. Phoenix assumed the seller’s $55.2 million loan from Corebridge Institutional Investments as part of the transaction.
Phoenix builds on South Florida strategy
Phoenix, led by Keith Rosenthal and Ron Orgel, has invested in South Florida multifamily properties for more than a decade. Its previous deals include the $69.5 million purchase of Park Colony Apartments in Hollywood in 2022, a $69.7 million acquisition of a 408-unit property in North Lauderdale in 2018 and a $52.7 million purchase of a 300-unit Broward County apartment community in 2015.
The Bay Pointe purchase gives the firm exposure to a recently delivered asset in a suburban Miami-Dade market, where rental demand is being weighed against new apartment supply.
Multifamily sales show signs of recovery
South Florida multifamily transactions totaled $2.5 billion during the first half of the year, a 19.4% increase from the comparable period, according to Avison Young data cited in the report. However, brokers have cautioned that some of the increase may reflect transactions placed under contract late in the previous year and completed after January.
Higher interest rates and elevated construction and operating costs remain challenges for buyers and sellers. Those pressures have limited deal volume and made financing more expensive, even as institutional investors return to the sector.
Supply remains a concern
Apartment leasing has begun to improve after several years of oversupply. In the 12 months ending in the second quarter, the region recorded 13,774 new leases, slightly exceeding the 12,751 units completed, according to CoStar Group data.
The improvement could prove temporary if the development pipeline delivers as projected. Nearly 28,000 apartments remain under construction, with many expected to reach the market late next year. That influx could again pressure rents, occupancy and investor returns.
Recent transactions involving Fairfield Residential’s $208 million purchase of Portofino Place Apartments in West Palm Beach and Harbor Group International’s $109 million acquisition of Emerald Palms in Miami-Dade County indicate that large multifamily investors continue to pursue Florida assets while carefully navigating the market’s uneven recovery.
Sources
- Pride Homes by Garco Sells Miami Rentals to Phoenix Realty, The Real Deal.