MIAMI— After just a year in business, MSP Group is making waves in South Florida’s commercial real estate industry. MSP is making its mark in South Florida’s multifamily market through investment sales.
Since opening its doors on March 25, 2015, between closed deals, deals under contract, and deals exclusively listed for sale the company has a deal volume of nearly 950 units representing almost $105 million in value. That’s a big impact for a company with two producers – company principals Deme Mekras and Elliot Shainberg.
“We are a young company started by a couple of veterans,” Shainberg tells GlobeSt.com. “We often phrase is as “brand new company, same old guys’.”
Mekras and Shainberg launched MSP After a three-year partnership at Marcus & Millichap. After 10 years at M&M, the duo also worked together at Franklin Street for about two and half year.
“Our combined 28 years of laboring in the trenches, focusing on long-term relationships and treating people right, are the foundation for the company’s success and accomplishments thus far,” Mekras tells GlobeSt.com. He pointed to the firm’s most recent deal – a 94-unit, mid-rise building in Miami Shores that closed for $11.4 Million, or just over $121,000 per unit. MSP represented the buyer, a 1031 Exchange that recently sold property in New York City and wanted to reinvest in South Florida.
“We are very long on South Florida in general and the prognosis of our vibrant real estate market” says Shainberg, MSP Group feels confident that the multifamily sector in South Florida is well positioned for not only values being sustained but for rent growth to continue, albeit, maybe not at the same pace.
“In general, the substantial rental price increases are being absorbed by the market because of the lack of alternatives for renters” says Mekras. “South Florida has ample amounts of new residential housing being built, however virtually all of this inventory is targeting the high end markets of both renters and buyers.”
Florida’s population is expected to balloon by more than 2.4 million people during the period from 2010 to 2020. That’s according to a study released by the Florida Demographic Estimating Conference and the University of Florida, Bureau of Economic and Business research, Florida Population Studies.
“Population growth creates demand for all products and all services in the region and is the bedrock for why MSP Group is so bullish on Florida,” says Mekras. “Couple this with our bring a gateway to Latin America, being a no-State-Income-Tax Sate and our relative affordability compared to other major metros around the world, makes it a great time to be in South Florida.”