Miami, FL – August 26, 2011 – (RealEstateRama) — Supporting increased confidence in the market, Domus Group, a Latin American investor purchased 1818 Meridian Avenue in Miami Beach, Florida. Calum Weaver who co-chairs the CB Richard Ellis (CBRE) Multi-Housing Private Capital Group in South Florida negotiated the $2.7 million sale transaction on behalf of the seller.
“This sale shows that the South Beach multi-housing market remains exceptionally strong,” says Weaver. “There are a multitude of investors, predominately from outside the U.S., who are aggressively competing for a limited number of multi-housing opportunities on South Beach. These investors are seeking value-add opportunities that will yield higher returns in the future by implementing a capital improvement program at the property. They are willing to pay a premium for a property that may not have strong financials, but provides significant upside potential. As such in-place cap rates on South Beach are extremely low. For example, 1818 Meridian traded for less than a 3% cap on in-place numbers.”
Built in 1956, the 28-unit apartment property was 89% occupied at the time of closing.
About CBRE PCG Multi-Housing
In South Florida, the CBRE Multi-Housing Private Capital Group focuses specifically in the sale and financing of multi-housing properties on behalf of private investors throughout South Florida. The typical CBRE Private Capital Group deal size is between $1 to $20 million. Clients are typically individuals and partnerships who have their own capital at risk for the purpose of building personal wealth, and their investment goals are met by maximizing value in every assignment and by providing them the finest advisors in the industry.
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.
elizabeth.cross (at) cbre (dot) com
lauren.crawford (at) cbre (dot) com