White Oak Development scored a $67 million construction loan for a 286-unit apartment project in Davie.
Coral Springs-based White Oak and Los Angeles-based Ares Management plan a pair of four-story buildings and a four-story garage with about 480 spaces at 4181 and 4233 Davie Road, according to city records.
Last week, an entity tied to White Oak bought the 4.1-acre site for $11.4 million from the Davie Community Redevelopment Agency and scored the loan, according to records and real estate database Vizzda. The lender is Los Angeles-based Kayne Anderson Real Estate.
The property has been slated for redevelopment for nearly three years. After a plan for the Altis Davie project with 286 units fell through in 2023, Paragon Group of Florida, led by Luis Gonzalez, expressed interest in developing the site. This prompted the town to issue a procurement for its land, picking White Oak as the buyer due to its proposed purchase price of $1.4 million more than Paragon’s, according to a 2023 Davie resolution.
White Oak will be the master developer, and Ares is a capital partner, White Oak’s 2023 letter to the town says.
The project will consist of one- to three-bedroom apartments, as well as two-story lofts, according to the letter. It will include workforce units, with 54 apartments designated for households earning no more than 120 percent of the area median income and three apartments designated for those earning no more than 80 percent of the AMI, a restrictive covenant signed this month shows.
White Oak was founded in 2011 by Armando Codina, Jim Carr and Andrew Burnham as CC Residential. In 2020, Codina and Carr stepped back into advisory board positions, and the firm was rebranded White Oak in 2022. Burnham is CEO.
Codina, who co-leads Coral Gables-based Codina Partners, and Carr also currently lead CC Homes.
In Davie, White Oak and Ares developed AMLI Toscana Place apartments at 5801-6151 Toscana Drive and 3300 Davie Road in 2013. They sold it to AMLI for a combined $114.8 million in 2015.
Ares, led by CEO Michael Arougheti, has been a hefty South Florida investor. The firm paid $147 million for the four-building Midway Miami Park industrial complex at 9675 Northwest 174th Street in Miami Lakes in October. That followed Ares’ $139.7 million purchase of the eight-story, 284-unit Ceru apartment building in Boca Raton in May.
Ares also is an investor in David Beckham’s Major League Soccer team Inter Miami CF. In 2021, funds managed by Ares’ Credit Group made a $150 million preferred equity investment in the team.
The planned Davie project comes amid a multifamily supply overhang due to hefty new completions and a slowdown of the influx of out-of-staters compared with the 2020-2022 boom. Developers completed a record 18,600 units last year, outpacing 15,000 net new leases, according to CoStar Group. That led to more concessions and a flatlining of rents, with rates dropping in some submarkets.
The supply is expected to be leased up this year and next year, partly due to a drop in construction starts.