MSP Group LLC closed the $6.3 million sale of several apartment complexes in Miami-Dade County with plans for renovations and higher rents.
GHG-SDB001 LLC, an affiliate of North Miami-based Global Horizons Group, bought Monterey Apartments at 575 NE 143rd St. in North Miami; Pris apartments at 7920 NW 36th Court outside Miami, 10520 NW 30th Ave. east of Hialeah and 3100 NW 135th St. in Opa-locka; and Verona apartments at 9050 NE Eighth Ave. in Miami Shores for $6.3 million.
The seller was Cristobal Gil, who owned and sold some of the properties through a corporation, according to the brokers at MSP Group.
MSP CEO Deme Mekras and managing partner Elliot Shainberg closed the deal April 9 representing both buyer and seller.
These are all value-add assets, which presented the buyer with the opportunity to improve the properties and ultimately generate more income from them.
GHG’s plan is to “buy well-located properties that have below-market rents, make improvements to the properties and bring up the income accordingly and add value to the assets,” Mekras said. The buyer is managed by Shai Yitzhaki and Guy Goldberg.
Improvements inside the apartments and possibly outside are expected, he added.
The revamp is expected to push up rents from the current average of $836 a month at Monterey, $683 at Pris and $731 at Verona.
“The product that GHG is going to provide for their tenants is going to command significantly higher rents,” Mekras said.
There are a total of 78 apartments in the transaction, which breaks down to $80,769 per unit. All are one-story properties except for Monterey, which is three stories. The properties were nearly 100 percent occupied at the time of sale.
The challenge with this deal was to sell all the properties sold at once in a portfolio deal, Mekras said. That dissuaded buyers who were interested in only one or two of the properties.
“Each one of these locations is pretty unique and distinct from one another,” he said. “It took us awhile to find a buyer that saw an opportunity in each of the locations and was able to look past the difference in locations and assess the business plan for each individual asset and have the ability to close on all of them simultaneously.”
MSP is a commercial real estate firm based in Miami.
The attorneys who worked on the deal were Alan Marcus, managing attorney at Alan J. Marcus in Aventura, for the buyer and Alexander Almazan of Almazan Law in South Miami for the seller.