Greystar has significantly expanded its South Florida portfolio with the acquisition of two garden-style multifamily properties totaling 639 units. The deal, brokered by Starwood Capital Group, includes the Avana Delray Beach and Avana New River communities, marking a substantial transaction in the dynamic Miami metropolitan area.
Key Takeaways
- Greystar acquired 639 units across two properties in South Florida.
- Starwood Capital Group was the seller in these two separate transactions.
- The deal involved substantial financing, with Greystar securing $150.8 million.
- Both properties were previously part of a larger portfolio acquired by Starwood in 2016.
Transaction Details
Greystar’s latest acquisitions comprise the 324-unit Avana Delray Beach in Delray Beach and the 315-unit Avana New River in Davie, Florida. These transactions were facilitated by significant financing, with Greystar securing a total of $150.8 million. JLL arranged a $67.4 million Fannie Mae loan for the Davie property, while MF1 Capital provided an $83.4 million loan for the Delray Beach community.
Property Background
Avana Delray Beach, located at 5600 Atlantic Ave., was developed in two phases, in 1998 and 2014. It spans 15 buildings across nearly 40 acres and features one- to three-bedroom units averaging 1,006 square feet. Avana New River, situated at 3711 W. State Road 84, was completed in 2001. This community consists of 21 three-story buildings and offers larger units, averaging 1,213 square feet. Both properties are strategically located within approximately 50 miles of downtown Miami and offer convenient access to Interstate 95.
Market Context
Starwood Capital Group had originally acquired both Avana Delray Beach and Avana New River from Equity Residential in 2016 as part of a massive $5.4 billion deal involving 65 assets. This recent trade highlights the ongoing activity in the South Florida multifamily market. Greystar, already a dominant player with over 1 million units and beds globally and a property value exceeding $300 billion, continues its expansion. The Greater Miami area has seen robust multifamily investment, with other notable transactions including deals by Blackstone and Nuveen. Despite a surge in deal volume, the market is also experiencing softening in some fundamentals, such as a slight decrease in advertised average rents and occupancy rates, as it absorbs recent supply.
Greystar’s Expansion
This acquisition aligns with Greystar’s strategic growth initiatives. The company recently acquired Avana at the Moors, a 358-unit property in Hialeah, Florida, from Nuveen for $93.5 million. These moves underscore Greystar’s commitment to strengthening its presence in key growth markets like South Florida.