Hollywood Beach Multifamily Becomes Hot Commodity

(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)

FORT LAUDERDALE, FL—Hollywood Beach multifamily is healing up. The CBRE Multi-Housing Private Capital Group in South Florida closed on two investment properties in 10 days there.

The sales include a 52-unit hotel with development approvals for 24 luxury condominium units and a 12-unit garden mutlfamily property. The deals representing $8.7 million in total transaction volume.

“These two transactions demonstrated an extremely strong investor appetite for multihousing product in desirable beach locations,” CBRE Multi-Housing Private Capital Group member Calum Weaver said in a statement. “The strong number of offers we received on both properties from domestic and foreign buyers shows that whether it’s an existing multihousing property or a future development site, investors have a robust appetite for beach locations.”

Property Markets Group purchased the hotel with condominium development approvals, known as Driftwood on the Ocean, for $7.6 million. CBRE marketed the property for sale on behalf of the owner, Dupont Hollywood LP. Located at 2101 South Surf Road with frontage on the Atlantic Ocean, the one-acre site sold for $263 per developable square foot.

A foreign investor acquired the 12-unit apartment community, located at 335 Georgia Street, for $1.1 million. CBRE represented the seller, a private individual. EWM’s Jeff Cohen represented the buyer. Built in 1955, the multifamily building spans 5,793 square feet,

“Strong occupancy, low supply, anticipated rent growth and historically low interest rates are all contributing to strong investor demand,” Weaver said. “Aside from all those drivers, South Florida remains a prime investment target of foreign capital seeking to invest in the U.S., particularly so for beach locations. In fact, our last five multihousing sales in beach locations have all been sold to foreign capital.”