MIAMI—It’s the highest-price per unit paid for a multifamily project in the north beach section of Miami Beach since 2008 (not counting new construction). Franklin Street just closed the sale of a 24-unit multifamily building here for $4.3 million in an all-cash sale to a foreign buyer. That puts the per-unit price at $179,000.
Franklin’s Deme Mekras, Elliot Shainberg, and David Reinke, represented the seller, a local investor. The buyer is an investor and developer from Italy. The buyer plans to convert the multifamily project into a condominium, according to Shainberg, a senior director in Franklin’s Miami office.
“This deal signals that the condo conversion business is back in full-swing in Miami Beach,” says Shainberg. “Investors are seeing profitability in condo conversions again, picking up where others left off when the real estate market crashed in 2007.”
Built in the 1960s, the multifamily property is located at 8101 Crespi Boulevard in Miami Beach. Shainberg says this was a particularly interesting deal because it involved the last four-story, mid-rise waterfront rental building within a two-mile radius that was not converted to condominium during the last boom.
“Being one of the last properties converted in the area paired with the fact that it offers water views with boat docks, covered parking, and a swimming pool made this a very unique property,” said Shainberg. “Most of the apartment complexes in Miami Beach don’t have these kinds of amenities or dedicated parking.”
Miami Beach remains the location of choice for foreign investors who want to move capital out of their own countries, Shainberg says. He notes: These investors feel their money is safer being invested in Miami Beach apartments and condominiums than putting it into foreign real estate or the stock market.”