Sorrento Property Group says it has sold two Florida apartment communities for a combined $30 million, freeing capital for larger properties. The 173-unit portfolio includes one community in Pembroke Pines and another in Pensacola. The firm plans to focus on garden-style apartment communities with at least 150 units, particularly in growing Sunbelt markets.
Key takeaways
- The sale covers Allaire on 41st Street, an 82-unit community in Pembroke Pines, and the 91-unit Reserve at Pensacola.
- The combined price was $30 million, or about $173,410 per unit.
- Sorrento plans to direct the proceeds toward garden-style properties with 150 or more units.
The details were announced by Sorrento in a company press release. The firm described both properties as well-performing assets that supported its earlier growth stage.
Two communities in distinct Florida markets
Allaire on 41st Street served renters in Broward County, where Sorrento said demand came from people seeking more space near South Florida employment centers. The Reserve at Pensacola is in the western Panhandle, a market the company said benefits from population growth and a substantial military presence.
Together, the properties total 173 units. Sorrento said the sale price was consistent with recent pricing for comparable suburban garden-style properties in Florida. The announcement did not identify the buyers or provide further transaction terms.
A shift toward larger properties
Founder and CEO Raphael Toledano said the company intends to apply its experience operating smaller communities to properties of 150 units or more. Sorrento argues that larger communities can spread costs for management, maintenance and amenities across more residents, potentially creating room for operational improvements and reinvestment.
The company says it will prioritize fewer, larger communities over a broader collection of smaller properties. It is targeting growing Sunbelt markets and expects to focus on garden-style apartments, while emphasizing upgrades and day-to-day operations as part of its investment approach.
Sorrento’s broader platform
Founded in 2019, Sorrento describes itself as a multifamily real estate investment firm that acquires and repositions garden-style apartment communities. The company says its acquisition and operating activity spans 13 states and totals $1.4 billion. The Florida sales mark a portfolio shift, though the announcement did not specify which properties the firm may pursue next.