Phoenix Realty Group has acquired the 269-unit Bay Pointe Apartments in South Miami-Dade County for $64.8 million, adding a recently completed property to its South Florida multifamily portfolio. The transaction highlights renewed investor interest in apartments despite elevated borrowing costs, construction expenses and lingering concerns about oversupply.
Key takeaways
- Phoenix Realty paid approximately $240,892 per apartment.
- The seven-story complex 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 investment sales increased 19.4% year over year in the first half of the year.
Deal details
The New York-based investment firm purchased the property at 18422 Homestead Avenue in an unincorporated area of South Miami-Dade from an entity connected to Pride Homes by Garco. Property records and real estate data identified the complex as Bay Pointe Apartments, while marketing materials have also referred to it as Alvista Bay Pointe.
Phoenix assumed the seller’s $55.2 million loan from Corebridge Institutional Investments as part of the transaction. The purchase price works out to roughly $240,892 per unit, underscoring the premium associated with a newly delivered apartment community.
Property profile
Built on 2.4 acres, the seven-story building contains a mix of 134 one-bedroom apartments, 129 two-bedroom units and six three-bedroom units. The property also includes approximately 3,700 square feet of retail space, giving it a small commercial component in addition to its residential income.
The acquisition gives Phoenix control of a recently completed asset in a growing South Miami-Dade corridor. Newer properties can offer investors modern amenities and fewer near-term capital needs, although they may also face competition from other recently delivered communities.
Phoenix expands South Florida presence
Led by Keith Rosenthal and Ron Orgel, Phoenix Realty has invested in South Florida multifamily properties for more than a decade. Its regional holdings and past investments include the Park Colony Apartments in Hollywood, acquired in a partnership for $69.5 million in 2022, and a 408-unit, 17-acre property in North Lauderdale purchased for $69.7 million in 2018.
The firm also bought a 300-unit Broward County apartment complex for $52.7 million in 2015. The Bay Pointe purchase continues its strategy of building exposure to rental housing across South Florida rather than concentrating solely in one submarket.
Multifamily market shows signs of recovery
South Florida multifamily sales totaled about $2.5 billion in the first half of the year, up 19.4% from the same period a year earlier, according to Avison Young data cited in the reporting. However, industry observers have cautioned that some transactions may have been negotiated late last year and simply closed in the current period.
Leasing conditions have also improved after several years of excess apartment supply. In the 12 months through the second quarter, the region absorbed 13,774 newly leased units, slightly exceeding the 12,751 units completed during that period.
The recovery remains fragile. Nearly 28,000 additional apartments are under construction, with many expected to open late next year. That incoming supply, combined with high interest rates and elevated operating and construction costs, could pressure rents and investment values even as transaction activity improves.
Sources
- Pride Homes by Garco Sells Miami Rentals to Phoenix Realty, The Real Deal.
- Garco sells Alvista Bay Point Apartments in Miami-Dade County to Phoenix Realty Group, The Business Journals.