A portfolio of 240 apartments in South Beach — one of the largest blocks of rental units to hit the market there at one time — is up for sale.
Brokerage CBRE, which is handling the sale, said the value of the portfolio is at least $65 million. The units are located in 15 low-rise buildings on Euclid, Michigan, Jefferson, Drexel, Penn and Meridian Avenues between Seventh Street and 15th Street in Miami Beach.
“People around the world know South Beach,” said Calum Weaver of CBRE. “But there is a shortage of rental buildings. Anything that is being built isn’t rental product, it’s high-end condos. This is an opportunity to invest in a market where you’re not going to have any new rental supply.”
$65 millionMinimum valuation for portfolio of 240 South Beach apartments
Miami has one of the lowest vacancy rates in the country for multifamily buildings at 3.6 percent, according to CBRE.
The apartments are mainly in Art Deco-style one- and two-story buildings that date to the ’50s and ’60s, said Herve Barbera, vice president of Bar Invest Group, which manages the properties. Many have historical facade protection from the city of Miami Beach. A family office group that Barbera declined to name scooped up the units when prices bottomed out during the recession in 2009 and then performed renovations.
Rents across the portfolio are about $2.25 per foot, compared to a little more than $3 for South Beach as a whole. The units have an average size of 615 square feet and rent for an average of $1,380. They range from studios to two-bedrooms.
“The rental price per square foot is going up and up and up in South Beach,” said Barbera, who added that most of the tenants are young professionals and young couples who work in South Beach, Brickell or downtown.
Most multifamily transactions in South Beach are small. The average size of multifamily deals for the area over the last year was 14 units, according to CBRE.