MIAMI—Riverwalk II is up for grabs in a Homestead multifamily market that’s proven hot for investment sales. A local private investor has hired CBRE to market the property.
 
Located at 301 SE 6th Avenue, the 112-unit multifamily community is a Low Income Housing Tax Credit (LIHTC) community with 93% occupancy. The investment opportunity is being marketed upriced.

“We’ve already sold two multifamily deals in Homestead this year,” Calum Weaver, a member of the CBRE South Florida Multihousing Private Client Group, tells GlobeSt.com. “Overall the market dynamics are suddenly picking up there. Occupancies are generally over 95 percent and rates are increasing. Homestead has become a lot more attractive for people on a price per unit basis. You can pick up something for under $100,000 per unit. In a lot of other areas of Miami, it’s tough to find that kind of pricing.”

A combination of low interest rates, cheap debt and local employment opportunities spurred by the Florida Power & Light upgrades at the Turkey Point Plant are also helping to drive more multifamily investors to homestead. Currently, Southside Apartments, a 73-unit multifamily asset in Homestead, is also for sale at a 10% cap rate.

“There’s no new supply coming out of the ground,” Weaver says. “You can buy multifamily in Homestead at below replacement costs, so that makes it even harder to justify building multifamily in Homestead right now. So that’s why I think you are going to see occupancies remain healthy.”

Recently, Weaver represented Heritage Phoenix, Ltd. in its disposition of the 164-unit Phoenix Apartments community. Riverfront Capital IV, LLC picked up that multifamily asset for $7.450 million. Heritage Phoenix is located at 1554 NE 8th Street and was 95% occupied. The sale was also a LIHTC transaction. In terms of Riverwalk II, Weaver says it’s a clean deal with good cash flow with above market returns.