Fruchtlanders’ FBE Limited has purchased an apartment community near Zoo Miami for $61.5 million, marking the family’s expansion into the South Florida multifamily market.
New York-based FBE Limited has purchased the 316 The Park units in Sheffield at 15601 Southwest 137th Avenue in unincorporated Miami-Dade County, near Kendall, according to broker Tal Frydman. He worked with Hampton Beebe, both of Newmark, on the deal.
The deal comes down to $194,620 per unit.
The sale price is 65% higher than the $37.3 million the property last traded for in 2017, records show.
The buyers at that time were Tampa-based Blue Rock Partner, founded by Reuven Oded, now part of his Blue Magma Residential, in partnership with a Canada-based investment firm and a New York-based institutional investor, according to the media. reports.
Sheffield Park has many single-storey buildings spread over 15.5 acres, according to property records. The community, built in 1987, has studios, as well as one- and two-bedroom apartments, with monthly rents ranging from $1,195 to $1,850, according to Apartments.com.
This is at least the third multi-family resort in South Florida that FBE Limited has purchased in the past year. The company is led by Abraham Fruchthandler and led by Yehoshua Leib Fruchthandler.
The other communities are Cypress Grove at 4200 Northwest 19th Street in Lauderhill, which FBE bought for $94.6 million in July last year, and The Club at Emerald Waters at 4000 North 56th Avenue in Hollywood, which FBE has bought for $31.9 million in October.
FBE is still betting on the northeast, as it wants to build a four-story, 120-unit condominium on 13 acres at Cold Spring Country Club in the town of Huntington on Long Island. The company had the site under contract in June.
Rising interest rates put a damper on the multifamily market, which had been hot for a few months after the start of the pandemic. According to Frydman, the FBE broker, some buyers with properties under contract had to either pull out of deals or renegotiate the price after their lenders changed acquisition loan rates. Still, FBE was the first winning bidder for The Park at Sheffield and did not need to renegotiate the price, Frydman said. He declined to disclose the amount of the mortgage or the FBE lender.
South Florida’s skyrocketing rents also help because it financially balances offers for buyers, he said.
In May, the Miami area again led the nation with the highest rent increase of 45.8%, with the median monthly rate reaching $2,843, according to Realtor.com.
In another recent deal near Zoo Miami, Milestone Group bought the Emerald Palms at 12325 Southwest 151st Street for $107 million in August.
Also near the zoo, Ram Realty, based in Palm Beach Gardens, is developing a mixed-use complex with a Walmart Supercenter, additional retail businesses and apartments. In December, Ram sold part of the project, the completed Mareas at Botanica rental complex at 15520 Southwest 127th Avenue, to Cortland for $174.3 million. The community was renamed Cortland South Kendall.