In another sign that North Beach is growing in popularity, an Italian real estate investor has purchased a multifamily complex just steps away from the North Beach Town Center for for $2.75 million.
A 16-unit fully-leased apartment complex at 6882 Harding Ave. called The Flats at Harding Avenue sold on Friday. Flats at Harding LLC, led by real estate investor Costantino Cicchelli, bought the two 1949 buildings, encompassing 12,871 square feet. They are set on a 12,500-square-foot lot, or just over an acre. The property last sold for $1.99 million in 2013.
David M. Cohen and Javier A. Ubeda, investment specialists in the commercial real estate investment firm Marcus & Millichap’s Miami office, were the listing agents and closed the deal.
In the short term, Flats at Harding LLC plans to renovate the units. “The idea would be to get the building, remodel the units, renovate the kitchen and bathroom to give them a more clean and modern look,” said Cicchelli. He said he might consider redeveloping the property in the future.
The renovations are expected to cost $17,000 to $18,000 per unit, or $272,000 to $288,000 in total. Rent increases — from the current $1,050 for a one bedroom and $1,250 for a two bedroom — will likely cover renovation costs but are expected to be minimal, he said.
Cicchelli said he was drawn to the area by the activity spurred by the Miami Beach commission’s decision last year to allow taller buildings in the area bounded by 72nd Street to the north, 69th Street to the south, Collins Avenue to the east and Indian Creek Drive to the west. Among approved projects is a renovation and expansion of Ocean Terrace, planned as a combination condo and hotel, and a public park.
“The whole market is influenced by these projects,” said Cohen.
The current RM-1 zoning code allows for multifamily development with minimum leases of six months and a day. It also permits developers to build up to five stories, according to City of Miami Beach ordinance amendments. City officials would have to approve projects scaling higher than the current limit.
The price for Flats at Harding was $213 per square foot — less than several other recent comparable multifamily sales. A 5,016-square-foot building at 6966 Byron sold for $1.6 million in September, or $318 per square foot. A 3,510 square-foot building at 8210 Harding sold for $1.5 million, or $427 per square foot in August, and a 4,368-square-foot building at 7124 Bay Drive sold for $1.3 million, or $297 per square foot, in July.
Sales and projects in North Beach are likely to continue, said Cohen and Ubeda, as rent regulations in California and New York draw developers and landlords to Florida.
“Operators, said Ubeda, “are seeing Florida as that sweet spot where they can get the highest return.”