Trion Properties made its Miami-Dade County debut with the $87.3 million purchase of a rental complex in the Fontainebleau neighborhood, marking unwavering investment appetite in the multifamily market.
Trion, based in Miami and West Hollywood, California, bought the 294-unit Art 88 at 8855 Fontainebleau Boulevard, according to a Trion news release. The property is in an unincorporated area, roughly a mile from Miami International Airport.
Trion took out a $73.2 million loan from Starwood Property Trust, which included assuming an existing $38.2 million mortgage, records show.
The seller, an affiliate of Denver-based Grand Peaks, had paid $42 million for Art 88 in 2017, records show.
Maurice Habif and Simon Banke of JLL brokered the sale. Jesse Wright, also of JLL, arranged the financing.
The purchase breaks down to $296,769 per unit.
Art 88 is 98.3 percent leased, according to Trion’s website.
The community, built in 1971, consists of eight two-story to five-story buildings and includes two pools, a gym, dog park, laundry facilities and barbecue grills, the release says. It offers one- to two-bedroom apartments, averaging 787 square feet.
Monthly rents are $1,850 a month, although this could vary among units, according to Grand Peaks’ website.
The seller renovated some units, one of the pools, the leasing office and gym, and Trion plans further improvements, according to the release.
Trion, led by managing partners Max Sharkansky and Mitch Paskover, focuses on buying multifamily real estate with value-add potential, according to its website.
The company is betting on its ability to increase Art 88’s value, with the potential for a roughly 31 percent increase in rent, the company’s website says. It plans a four-year hold.
Trion’s other Florida properties are Altamonte at Spring Valley at 693 Wymore Road in Altamonte Springs, and Patterson Court at 8151 Patterson Woods Drive in Orlando. Along with Art 88, the three complexes are part of Trion’s third multifamily fund launched last year.
The strong South Florida multifamily market, fueled by high demand from locals and transplants, has prompted skyrocketing rents and investment appetite.
Miami led the U.S. in rent hikes, with median rates increasing 58 percent in the two years since the onset of the pandemic.
In another deal in Fontainebleau, Harbor Group International bought the 275 Fontaine Parc apartment building at 275 Fontainebleau Boulevard for $50 million in April.
Harbor Group, based in Norfolk, Virginia, bought the pair of ParkLine Miami apartment towers at Brightline’s downtown station for roughly $450 million in March, marking a record single multifamily asset sale in South Florida.
This month, Aimco’s multifamily spinoff, Air Communities, scooped up the Watermarc at Biscayne Bay apartment tower at 2150 North Bayshore Drive in Miami’s Edgewater neighborhood for $211 million.