Stephen Ross’ hefty wager on South Florida real estate is no longer limited to prime markets such as Miami’s Brickell and downtown West Palm Beach.
The billionaire founder of Related Companies and owner of the Miami Dolphins scooped up the Monterra affordable apartment complex at 2601 Solano Avenue in Cooper City for $55.5 million, according to records.
Sellers ZOM Living and NRP Group completed the garden-style community in 2012, a year after paying $3.4 million for the 12.6-acre site, records show. They financed contruction through Low-Income Housing Tax Credits, a program that subsidizes affordable housing construction.
The sale of 300-unit Monterra breaks down to $185,000 per apartment.
Monterra is almost fully leased, according to a statement by Zom’s CEO Greg West, which was published in media reports.
The purchase is a deviation for Related from the properties and areas it has targeted in South Florida over the past two years. The firm and Ross have largely focused on offices in urban cores.
New York-based Related is the biggest office owner in West Palm Beach, where it last year scooped up the pair of Phillips Point towers and CityPlace Tower, as well as half of the ownership interest in Esperanté Corporate Center.
The shopping spree has been largely a wager on downtown West Palm morphing into “Wall Street South” thanks to the influx of financial firms since late 2020.
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Related is also adding to West Palm’s office market. It completed 360 Rosemary last year, and it is now developing the 25-story One Flagler, dubbed the “hedge fund tower” for the financial companies it’s expected to attract as tenants. It’s planning the 515 Fern office tower near 360 Rosemary.
In Miami, Related has partnered with Brickell City Centre developer Swire Properties on a planned office supertall that will be part of the mixed-use complex. Once finished, the building would be the tallest commercial high-rise in Florida.
The firm has had less luck in Miami Beach. In last Tuesday’s referendum, voters struck down a measure that would have allowed Ross to redevelop the former Deauville resort site with a taller and bigger condo-hotel project than what is currently allowed.
Related isn’t the only one betting on South Florida’s suburban multifamily market or on affordable rentals.
Covenant Capital Group bought the Blue Isle community at 5100 West Sample Road in Margate for $60.9 million in October.
Blackstone Real Estate Income Trust made a huge investment in affordable housing this year, buying a portfolio of 42 communities throughout South Florida from Cornerstone Group.