The latest out-of-state investor drawn to Miami’s hotter than ever multifamily market is a Michigan immigration attorney, who scooped up a new building for $6.9 million.
Rami Fakhoury, through an affiliate, bought the Silver Cove apartments at 2010 Southwest 25th Terrace in the Silver Bluff neighborhood.
Developer Alfredo Borges, who completed the building in December, sold the property, according to one of his deal brokers, David Cohen. Cohen worked with Arthur David Porosoff, both of the Porosoff Group at Compass Florida.
Borges bought the 0.3-acre site in 2018 for $25,000, property records show.
The buying entity ties to Fakhoury, state corporate records show. He is the founder and managing director of Fakhoury Global Immigration in Troy, Michigan.
The four-story Silver Cove has a lobby on the first floor and three stories with six units each. There are 27 covered parking spots, and all units have a washer and dryer as well as a balcony, according to the offering memorandum.
The fully leased, 18-unit building traded for $385,000 per door, according to the brokers. Silver Cove totals 20,373 square feet of square feet of rentable space.
Cohen said he quickly leased up the building even during the pandemic, in light of the robust South Florida multifamily market fueled by high demand.
“In the last six months, the rental market really exploded in Miami. There has been a tremendous amount of rent appreciation,” he said. Silvercove offers a reprieve “for people priced out of the Brickell market.”
Rents average $1,908 a month for a two-bedroom, one-bathroom unit; $2,268 for a two-bedroom, two-bathroom; and $2,790 for a three-bedroom, two-bathroom, according to the offering. There is a potential for a rate increase of about $200.
Rents across South Florida have been skyrocketing in light of unprecedented demand in recent months from locals and newcomers to the region. While locals have returned to work and are ready to rent on their own, there also has been an influx by out-of-state tenants who have been attracted in part by Florida’s early economic reopening.
This has caught the eye of investors, who have been willing to shell out top dollar for apartment buildings. In the most expensive deal, Cortland bought a new seven-building community in Boca Raton for $230 million in August.
In October, the billionaire family that owns the Washington Nationals bought the Motion at Dadeland tower for $114 million.