The Carroll Organization bought a relatively run-down resort community in the largest multifamily transaction in Florida so far this year, at $225 million.
Atlanta-based Carroll nabbed the 1,520-unit community north of Miami, called the Resort at Pembroke Pines, despite the somewhat outdated fixtures and amenities, the Wall Street Journal reported.
As such, buy is seen as a signal of developers’ interest in pre-existing apartment assets, the paper said. Even existing apartments that are not the most luxurious on the market.
“Land prices and development costs are going up, and rent growth is slowing,” Haendel St. Juste, a senior analyst with Morgan Stanley, told the Journal. “And it takes two to three years to deliver [new apartments], and the world could be materially different two or three years from now. Development risk is much higher this late in the cycle.” [WSJ] — Guelda Voien