MIAMI—With interest rates on the rise, and available product scarce, has the multifamily market in South Florida finally reached a tipping point? Not according to Calum Weaver, of CBRE’s Multi-Housing Private Capital Group.
Weaver’s group focuses on sales in the private capital range of $1 to $10 million. According to CBRE, South Florida multifamily properties in that price range saw over $517 million in sales over the past 12 months, a jump of 219% over sales volume in 2009-2010.
Weaver, whose team recently listed 113 units at Bermuda Cay in Boynton Beach, one of the last fractured condo deals in South Florida, anticipates continued growth in multifamily sector for the foreseeable future. However, he tells GlobeSt.com, all-cash buyers are going to face stiff competition from financed buyers, and B and C properties in good locations are prime candidates for value-add opportunities.
GlobeSt.com asked Weaver what factors are contributing to continued growth of the multifamily market? First and foremost, he told us, strong fundamentals.
“Occupancies in most properties are at or above 95%, and rents in Miami-Dade, Broward and Palm Beach counties are at record levels, above those set in 2006-2007,” he says. “Also, the region’s population growth is forecasted to outpace housing unit growth through 2017.”
Weaver reports the availability of financing for multifamily deals at attractive rates is another big factor. Finally, he says, investors from all over the world have earmarked South Florida as the market they want to be in.
“CBRE private capital sold 20 properties, totaling $66 million, in South Florida during the first half of 2013,” Weaver says. “That’s a record number of deals and we think positive market fundamentals coupled with low interest rates and plentiful investment capital are going to continue to drive growth.”
Come back this afternoon for part two of this exclusive interview series.