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Art-Deco-apartments-in-South-Beach-to-be-converted-to-short_term-rentals
June 6, 2016
The Real Dealby Deme Mekras

Art Deco apartments in South Beach to be converted to short­term rentals

A boutique apartment building in South Beach has a new owner and a new purpose: the 10­-unit Art Deco building was sold to a Spanish investment group that will convert the property to short­-term rentals.

West Avenue Deco Apartments LLC sold the building at 1443 West Avenue for nearly $2.2 million, MSP Group told The Real Deal. MSP Group principals Deme Mekras and Elliot Shainberg represented the seller, who they declined to disclose. The deal closed on Tuesday.

The Miami­-based LLC, which is controlled by attorney George Befeler, paid $1.6 million for the 6,100­-square-­foot building in February 2015 and put the property on the market in December for $2.4 million.

“The property sits in the West Avenue Bayfront Overlay District, which allows properties in this zone to operate under the city’s Suite Hotel designation,” Mekras said in a press release.  Built in 1936, the building includes two studio apartments, four studio units with dens, and four one-­bedrooms. The new owner will be applying to change the current use from multifamily to suite hotel, and will operate the building as a vacation rental, according to the release.

Operating short­-term rentals in place of long­-term apartments is appealing to investors looking to increase their profits. And websites like Airbnb, HomeAway and VRBO could impact the availability of workforce and affordable housing, especially in Miami Beach.

At an April panel covering the impact of Airbnb on the hotel industry, city manager Jimmy Morales said home­-sharing websites “used to be more of a quality of life issue … Now it’s grown to an economic issue as well.”

Read the full article here.

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Hollywood-apartment-complex
June 3, 2016
The Real Dealby Deme Mekras

Hollywood apartment complex flipped for $39M, marking $9m profit

Miami-­based CFH Group has sold Sunset Palms, a 318­-unit Hollywood complex, for $38.5 million.

Records show Sunset Palms United LLC, a 1031 exchange, bought the property at 7400 Stirling Road. Les Chalet Investments LLC, a CFH affiliate, made $9 million on the deal after paying $29.9 million for the complex, formerly known as the Conquistador Apartments, in May 2015.

MSP Group‘s Deme Mekras and Elliot Shainberg brokered the deal, according to a press release. The sale breaks down to about $121,000 per apartment. “This deal was a true win-­win­-win where the buyer successfully exchanged into solid South Florida multifamily, the seller realized a significant profit and moved out of product that is older than they prefer to own and Elliot and I are pleased to have played a critical role in putting it together,” Mekras said in the release. MSP Group declined to name the buyer.

The 14-­acre property was developed in 1975. Rents range from $875 for a studio to $1,315 for a two-­bedroom apartment, according to CFH’s website. Amenities include a pool and pool deck, tennis courts, a playground, picnic areas and parking.

The seller planned a $2 million upgrade to the property, including a new 3,000­-square-­foot clubhouse with a 24-hour gym and computer lounge, a renovation of the pool, exterior facade and landscaping additions, according to a January press release on the company’s website. The renovations were slated for the second quarter of this year.

Earlier this year, Berkadia put a portfolio of three South Florida apartment complexes up for sale, including a 174-­unit market rate complex in Hollywood.

Read the full article here.

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Burke-Leighton-pays-11M-for-apartments-in-Miami-North-Miami-Beach
May 16, 2016
The Real Dealby Deme Mekras

Burke Leighton pays $11M for apartments in Miami, North Miami Beach

New York-­based Burke Leighton has acquired two apartment buildings in Miami and North Miami Beach for $11 million, or $100,000 per unit.

Grand Island Square, a North Lauderdale­-based partnership led by Kris Persaud and Eyal Mehaber, sold the two buildings at 1495 Northeast 167th Street and 2350 Northeast 173rd Street, also known as Grand Island 2 and Grand Island 3.

The properties are part of a bigger portfolio for which Grand Island Square paid $28 million in May of last year. The partnership then renovated the buildings and raised rents to market­-rate, according to a press release.

The first, a 60-­unit building at 1495 Northeast 167th Street, was built in 1959 and last sold for $5 million in May. Those units all face the interior courtyard and pool deck.

The second, a 50­-unit, 59,400­-square­-foot building at 2350 Northeast 173rd Street in North Miami Beach, was built in 1969 and last sold for $6.5 million. The property includes a pool deck and balconies, as well. It’s located about one block west of Marina Palms Yacht Club & Residences, which when completed at the end of this year will have two 25­-story towers and a combined 468 units.

MSP Group’s Deme Mekras and Elliot Shainberg brokered the deal between Grand Island Square and Burke Leighton.

“Burke Leighton is a shrewd investor aggressively building a South Florida portfolio and Grand Island Square is shedding assets that don’t fit their portfolio,” Shainberg said in the release. Mekras said the seller offloaded the two buildings because they are “smaller than their target acquisitions.”

The deal, which closed on Friday, marks a loss of $500,000 for the Grand Island Square partnership.

Burke Leighton has thousands of apartments in Brooklyn and Manhattan, and has more than 10 South Florida properties in its portfolio. Earlier this year, the firm spent $10.8 million on the newly developed Victorian, a six-­story apartment building in Little Havana.

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Apartment-buildings-near-Miami-Shores-sell-for-11.4M
April 12, 2016
The Real Dealby Deme Mekras

Apartment buildings near Miami Shores sell for $11.4M

A pair of apartment buildings on the border of Miami Shores just traded for $11.4 million.

Noden Properties sold the 94 units at 8951 Northeast Eighth Avenue and 800 Northeast 90th Street in Miami, according to brokers involved in the deal. That breaks down to more than $121,000 per apartment.

Jacob Serure of Charles Rutenberg Realty represented the seller, a Miami­based company. MSP Group’s Elliot Shainberg and Deme Mekras represented the buyer, who is undisclosed. Mekras said the sale was under contract for less than a month before it closed on Monday. The deal has not yet cleared county records.

Serure told The Real Deal in an email that he started marketing the properties in November through his network of buyers and brokers. Property records show the apartments last sold for about $2.8 million in 1999. The larger five­s tory, 70,765­-square-­foot building was built in 1970, and the two-­story, 5,385­-square­-foot building to the north was developed in 1968. Together, they total about

1.7 acres of land on the border between unincorporated Miami­-Dade and the village of Miami Shores, east of Biscayne Boulevard. The area is sandwiched between the MiMo neighborhood to the south and the city of North Miami to the north.

The seller, Noden Properties, is managed by Fidel Yero of Weston and Nora Yero of Miami.

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MSPG_3
June 9, 2015
The Real Dealby Deme Mekras

Former Franklin Street brokers launch new CRE firm

After 10 years at Marcus & Millichap and two years at Franklin Street Real Estate Services, Deme Mekras and Elliot Shainberg decided in March to start their own commercial real estate firm, Miami­-based MSP Group.

Together, they’ve closed more than $500 million in deals in South Florida.

“Our focus is what it has always been: the private sector of the multifamily business,” Mekras told The Real Deal.The pair has experience executing transactions for private investors, local and regional banks, large institutions, national special servicers, operators backed by hedge funds, and national agencies, according to a press release.

Mekras was previously regional managing partner at Franklin Street and a founding member of the Marcus & Millichap Miami office. Shainberg was a senior director at Franklin Street and a senior associate at Marcus & Millichap. The company has three exclusive assignments since launching at the end of March — two multifamily properties in Hialeah and a land development opportunity in Miami’s Edgewater neighborhood, at 314 Northeast 26th Terrace.

The 5,300-­square-­foot site east of Biscayne Boulevard is zoned for up to 36 stories. The two­-story office building onsite is leased to two tenants, making it a well­-positioned site for investors looking for income-­producing land in an exploding area, Mekras said.

The property, which last traded for $37,500 in 1994, is now on the market for $1.335 million.

MSP’s goal for this year, Mekras told TRD, is to pick up more inventory for the company’s client base of income investors, and focus on relationships with those clients.

“A lot of times when you’re at a company where the goal is growth and expansion, you lower [your] standards. That became tiresome,” he said. “We’re small enough so that quality control is possible.”

Read the full article here.

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