FCP bought a 400-unit apartment complex in Sunrise for $90 million.
Chevy Chase, Maryland-based FCP bought the Arium Sunrise complex at 1501 Northwest 124th Terrace from Los Angeles-based PCCP and Newton, Massachusetts-based RMR Group, according to records and real estate database Vizzda. The deal breaks down to $225,000 per unit.
The buyer borrowed a $74 million floating-rate loan from Wells Fargo that matures in 2027, records show.
Completed in 1997, Arium Sunrise consists of 20 three-story apartment buildings on a 22.2-acre site, Vizzda records show. It offers one- to three-bedroom units.
In 2019, an entity tied to PCCP paid $86.7 million for the complex, according to records.
PCCP, or Pacific Coast Capital Partners, is a commercial real estate debt and equity investment manager that had a portfolio of $24.9 billion assets under management in September, its website shows. PCCP is led by co-founders Donald Kuemmeler, Aaron Giovara and William Lindsay.
RMR, led by Adam Portnoy, is a commercial real estate investment, financing and management firm with more than $40 billion in assets under management, according to its website.
FCP, or Federal Capital Partners, has invested and financed more than $13.1 billion in real estate since it was founded in 1999, its website shows. It’s led by Esko Korhonen, Lacy Rice and Alex Marshall.
FCP has ramped up its South Florida multifamily activity in recent years. In December, it paid $67.5 million for the 250-unit Solena Miramar complex at 3155 Southwest 147th Terrace in Miramar. That same month, FCP also sold the 352-unit Windward Vista complex at 4491 Northwest 19th Street in Lauderhill for $44.1 million.
In 2023, FCP bought the 220-unit Avana Cypress Creek at 1700 South State Road 7 in North Lauderdale for $53.1 million.
South Florida multifamily investment sales activity has been quiet so far this year. Among recent deals, CSL Partners and Presidium paid $95 million for the 260-unit Pura Vida Hialeah apartment complex at 3051 West 16th Avenue in Hialeah, and TA Realty paid $118 million for the 300-unit Bell Pembroke Pines at 16700 Sheridan Street in Pembroke Pines.
Elevated interest rates, skyrocketing insurance and a flatlining of rents resulting from hefty new apartment supply and a leasing slowdown, could be why sales activity has dropped. The Federal Reserve imposed 11 aggressive interest rate hikes in 2022 and 2023. Despite three cuts to the benchmark rate last year, rates haven’t dropped significantly.
Last year, total dollar volume for South Florida apartment trades reached $4.3 billion, which included a sales flurry before year-end, and marked an uptick from $3.4 billion in 2023, according to data from Avison Young.
These figures still marked a slowdown from the boom year of 2021, when deal volume reached $15.4 billion, and 2022, when it reached $9.2 billion, the data shows.