Luxury developments have been proliferating in east Fort Lauderdale, thanks to the perpetual allure of the ocean and an influx of restaurants and bars. But the sale of a 65-unit apartment complex in the Dorsey-Riverbend area of the city shows that price appreciation is not limited to trendy neighborhoods.
Dorsey-Riverbend is just west of I-95 on the north side of Broward Boulevard. First Street Apartments, also referred to as North Fork Gardens, is on Northwest First Avenue, and sold last week for $6.9M, or $107K per unit.
Agents described the deal as a new sales record for this area. It marked an 82% appreciation in value above the $3.8M price paid for the property in 2015.
Franklin Street’s multifamily investment sales team represented both the buyer, City View Colony LLC, an entity of KVR Properties, and the seller, First Ave Apartments LLC. Both are based in South Florida.
Franklin Street Director of Multifamily Investment Sales Hernando Perez said within the first two weeks of the asset hitting the market, his team gave 30 property tours to prospective buyers.
“In light of the competitive nature of the South Florida multifamily market, where investor demand is high and combined with the limited supply of investment properties, the buyer submitted a hard day one offer,” Senior Vice President Greg Matus said.
The units will be updated, and new owners intend to add a fitness center and add a media room with computers for tenants.
“Because the property was such a standout in its market, it was a challenge to find rent and sales comps that would justify the asking price per door,” Investment Associate Dan Dratch said. “However, we had incredible interest in the property from all our clients, and so we were able to put the asset under contract just two weeks after going to market.”