A New York-based multifamily developer just bought another site near FIU for $5.2M
A corner lot near Florida International University sold last week to a New York-based multifamily developer.
Adam America Realty purchased the 17-unit, 24,451-square-foot multifamily development at 10703-10712 SW Seventh Terrace for $5.2 million near the FIU main campus, according to Colliers International South Florida broker Virgilio Fernandez. It is adjacent to the 36-unit, 1.7-acre multifamily development that the company bought in August 2019 for $20 million. Thus far, the firm spent a total of $25.2 million acquiring 2.2 acres in Sweetwater.
Fernandez and colleagues Gerard Yetming, Mitash Kripalani and Julian Zuniga represented the seller and second-generation owner Kendra Parker. Attorney Gita Gandhi with New York-based Herrick, Feinstein LLP represented the buyer.
“Adam America Real Estate has a vested interest to develop the site,” Fernandez said.
Given the county’s Urban Center District Regulation zoning, Fernandez said, Adam America Real Estate can demolish the existing units and build an approximately 18-story building with 210 units per acre or a max of 840 beds per acre — a total of 462 — with parking.
“I assume Adam America will develop 210 units per acre as a high-rise upscale student living tower,” Fernandez said.
The next step to develop the site would be permitting, he said. But there also exists the possibility that the firm will want to purchase more land.
Adam America Real Estate declined to comment on further steps and plans, Gandhi said.
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Adam America Realty paid $212 per square foot — $74 per square foot more for the site than the comparable July 2018 sale of 10726 SW Fourth St. That property, measuring 10,454 square feet, brought $138.70 per square foot, or a total of $1.45 million.
The area is attracting developers who are especially interested in building Class A student housing, Fernandez said. About 55% of the units within a one-mile radius of the campus are Class C. The Class A inventory averages $1,000 per bed. Fernandez said demand for new inventory grows as FIU continues to expand with the addition of more academic buildings on its main campus and is accepting 1,000 more students every year.
“Students seem to be favoring Class A over Class C Buildings,” Fernandez said. “They are flocking from older functionally obsolete Class C buildings to newer buildings with amenities which include co-living & co-working space.”
Among new options is The One at University City, an 886-unit building, which opened its leasing office in October with plans to house students in the finished product by summer 2020. According to its original plan, the complex would have been connected to the main campus by a pedestrian bridge; it collapsed in March 2018.
This story was originally published January 30, 2020 at 7:00 AM.
