Phoenix Realty Group has acquired the newly built Bay Pointe Apartments in South Miami-Dade County for $64.8 million, adding 269 rental units to its South Florida portfolio. The transaction underscores renewed investor interest in multifamily properties, even as elevated borrowing costs, construction pipelines and lingering supply concerns continue to shape the market.
Key takeaways
The transaction highlights several important developments in the region’s apartment market:
- Phoenix Realty purchased the 269-unit Bay Pointe Apartments for $64.8 million.
- The property includes apartments, retail space and a $55.2 million assumed loan.
- The 2024 development traded for approximately $240,892 per unit.
- South Florida multifamily sales increased during the first half of the year, but market risks remain.
Details of the Bay Pointe acquisition
The New York-based investment firm bought Bay Pointe Apartments at 18422 Homestead Avenue, in an unincorporated section of South Miami-Dade County. The seller was an entity tied to Pride Homes by Garco.
Phoenix assumed a $55.2 million loan on the property from Corebridge Institutional Investments. Based on the reported purchase price, the deal values each apartment at roughly $240,892.
Completed in 2024 on a 2.4-acre site, the seven-story building contains 134 one-bedroom units, 129 two-bedroom units and six three-bedroom units. The development also includes approximately 3,700 square feet of retail space.
Phoenix expands its South Florida footprint
The acquisition adds to Phoenix Realty’s decade-long activity in South Florida. The firm, led by Keith Rosenthal and Ron Orgel, partnered with other New York-based investors to buy Hollywood’s 269-unit Park Colony Apartments for $69.5 million in 2022.
Phoenix also purchased a 408-unit, 17-acre property in North Lauderdale for $69.7 million in 2018. In 2015, the firm acquired a 300-unit Broward County apartment complex for $52.7 million.
These transactions indicate that Phoenix continues to target rental housing across the region, where population growth and employment have supported long-term demand despite short-term market pressure.
Multifamily market shows signs of recovery
South Florida multifamily sales totaled $2.5 billion during the first half of the year, a 19.4 percent increase from the same period a year earlier, according to Avison Young data cited in the report. However, industry observers have cautioned that some transactions may have been negotiated late last year and closed only recently.
Higher interest rates and elevated operating and development costs continue to weigh on investment decisions. Apartment owners and buyers also face a market that is still adjusting after several years of significant new supply.
New construction could challenge rent growth
Leasing conditions have improved as recently completed inventory has been absorbed. In the 12 months through the second quarter, new leasing reached 13,774 units, slightly exceeding the 12,751 apartments completed during that period, according to CoStar Group data.
That balance could shift again. Nearly 28,000 units remain under construction, with many expected to be delivered late next year. A fresh wave of openings could increase competition among landlords and limit rent growth, even as investors pursue newer properties such as Bay Pointe.
Other major transactions
Phoenix’s purchase follows several large multifamily deals in South Florida. Fairfield Residential recently acquired the 812-unit Portofino Place Apartments in West Palm Beach for $208 million. Harbor Group International also expanded its regional holdings with a $109 million purchase of the more than 500-unit Emerald Palms in unincorporated Miami-Dade County.
Together, the transactions suggest that institutional buyers are returning selectively to the market, favoring established rental demand and newer or well-positioned assets while remaining attentive to financing costs and future supply.
Sources
- Pride Homes by Garco Sells Miami Rentals to Phoenix Realty, The Real Deal.