Franklin Street completed two separate bulk condominium transactions in South Florida involving a total of 178 units for $12.6 million.
Franklin Street’s Deme Mekras and Elliot Shainberg represented the buyers and sellers in each deal.
At the Windward Lakes Condominiums in Pompano Beach, Mekras and Shainberg sold 104 units for $9.6 million or approximately $92,308 per unit. Windward Lakes has a total of 276 condo units.
The seller was a privately-owned investment fund from Massachusetts that took title to the properties in a foreclosure action. The buyer is an affiliated entity of Hon Capital LLC, an investment company based in Hollywood, Florida. The seller leased out the units while waiting for the real estate market to recover from its losses in the late 2000s. All of the purchased units are between one and three bedrooms.
Windward is located at 4001 West McNab Road, Pompano Beach. The complex was developed as rental apartments in 1992 and later converted to condominiums. The development has a pool, detached garages, clubhouse, BBQ area, gym, and lake views.
“There are very few deals like this one left in South Florida,” said Mekras. “Most lenders who took title to foreclosed properties 4-6 years ago took action to get them off their books some time ago,” said Shainberg. “Very few were able to hang on and ride out the downturn like our seller.”
The Franklin Street team also sold 74 of the 144 residences at Southwood Condominiums in South Miami-Dade to a private real estate investor for $3.039 million or $41, 075 per unit. There were eight different sellers including one entity, RAK Investment, LLC, which owned 53 of the units.
The buyer now owns more than 50 percent of the complex allowing it control of the condominium association said Mekras. It plans on renovating the interiors and common areas so that it can secure higher rents on new leases and renewals. Right now, the average rent is $700 per month. The purchased units include efficiencies, one-and-two-bedrooms.
“One of the challenges to the deal was due to the fact that the subject units were owned by eight different sellers,” said Mekras. “But it was important for them to obtain enough units to control the association so that they can make value-added improvements to the property and remedy deficiencies in the condo association.”
Mekras said the buyer already owns about 500 other condo/rental units in the immediate area and has an intimate understanding for the rental market.
Southwood is located at 11050 SW 197th Street, Miami.