When it comes to maxx adds to south florida holdings with $70m plantation multifamily buy, maxx Properties has made a significant move in South Florida's real estate market by acquiring The Ellery, a 250-unit multifamily complex located at 6901 West Sunrise Boulevard in Plantation, for $70 million. This sale, finalized at $280,000 per apartment, reflects a 4.1 percent increase from the purchase price six years ago by the previous owner, Bell Partners. The transaction highlights Maxx's continued investment strategy in the region, marking at least its second major multifamily acquisition in South Florida since the start of 2024.
Understanding Maxx Adds To South Florida Holdings With $70M Plantation Multifamily Buy
The Ellery consists of a mix of three three-story buildings and three five-story structures, all situated on an expansive 11.8-acre site. Developed in 2017, the complex features a range of one- to three-bedroom apartments, with monthly rents varying from $1,980 to $2,779, according to listings on Apartments.com. Financing for the purchase was secured through a $55.1 million loan from Fannie Mae, which will support Maxx Properties as it integrates the new asset into its growing portfolio. Learn more on Investopedia.
Bell Partners, a Greensboro, North Carolina-based real estate investment firm led by CEO Lili F. Dunn, initially acquired The Ellery in 2018 for $67.2 million from Alliance Residential. The sale to Maxx Properties not only demonstrates a profitable return for Bell Partners but also underscores the shifting dynamics of the multifamily market in South Florida.
Maxx Properties' Growth Strategy
Maxx Properties, a New York-based firm managed by the Wiener family, has been steadily expanding its multifamily holdings. The company's portfolio now includes approximately 39 complexes, totaling over 9,000 units across seven states, along with more than 1,000 cooperative units in New York. The leadership team comprises Eric "Rick" Wiener as chairman, Andrew Wiener as vice chairman, and David Wiener as director. This recent acquisition of The Ellery is part of a broader strategy to enhance their presence in high-demand markets like South Florida.
Earlier in 2024, Maxx Properties made headlines by purchasing a 145-unit apartment complex in Wilton Manors for $46.6 million. This momentum indicates a calculated approach to asset accumulation, especially as the firm divests from other properties. In 2022, Maxx affiliates sold three complexes in North Miami Beach, Coral Springs, and Davie for a total of $82 million to a partnership including Mavik Capital Management, Triangle Capital Group, and Corinthian Capital Real Estate Partners.
Market Trends in South Florida Multifamily Sector
The multifamily market in South Florida has been experiencing a slowdown, largely attributed to a surge in new completions and record deliveries in recent years. The influx of new apartments has led to slower lease-up rates, increased concessions, and a notable drop in rental prices. According to a report from Realtor.com, the average asking monthly rent in the region fell to $2,235, marking a 3.3 percent decrease compared to the previous year.
Data from CoStar Group indicates that apartment investment sales in the tri-county region totaled approximately $750 million in the first quarter of 2024, a decrease from $1 billion during the same time last year. This decline contrasts sharply with the $410.4 million reported in the first quarter of 2024, highlighting the challenges facing the sector as developers grapple with an oversaturated market.
Recent Activity in the South Florida Market
Despite the overall slowdown, notable transactions continue to occur in the South Florida multifamily landscape. Recently, Griffis Residential acquired a 263-unit complex located at 805 North Olive Avenue in West Palm Beach for $78.5 million. Similarly, Dermot Company made headlines by purchasing the 340-unit Quaye at Palm Beach Gardens for $131.8 million. These transactions illustrate that while the market is facing challenges, opportunities still exist for investors willing to navigate the evolving landscape.
As Maxx Properties integrates The Ellery into its portfolio, the firm is poised to leverage its position in South Florida's multifamily sector. The company's strategic acquisitions reflect a broader trend among investors seeking to capitalize on the region's growth potential, even amidst market fluctuations. With a focus on quality assets and a commitment to community, Maxx is likely to remain a key player in South Florida's multifamily real estate arena.
Originally reported by The Real Deal. View original.