MIRAMAR, FL-An unidentified South Florida-based private investor paid $29.3 million, or $101,034 a unit, for New Park Towers with plans for a condo conversion. The seller is Sandycrest Terrace, a New Jersey-based general partnership.
The price was $300,000 above list, Daniel Draizin, associate director of Marcus & Millichap's national multihousing group, tells GlobeSt.com, adding that above-list prices are not uncommon in this area now, "and condo converters use an entirely different equation than others buyers do in determining return on investment." Draizin and Evan Kristol, director of the firm's national multihousing group, represented the seller and also secured the buyer. Both men are located Marcus & Millichap's Fort Lauderdale office.
The five-building, 290-unit rental property was built in 1990 and is approximately 95% occupied, Draizin says. It contains 305,016 rentable sf, all in two- and three-bedroom units, so the acquisition cost was approximately $96 per sf. The current rental rate for a two-bedroom is $890 a month, and three-bedroom units rent for $1,090 a month.
The property has a pool, clubhouse and fitness center, and "the new owner plans to add a picnic area among other upgrades and some additional amenities," Draizin says. After completing the condo-conversion regulations regarding notification of tenants, sales will begin, starting at between $160,000 and $200,000 a unit, according to Draizin.
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