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Miami Developer Looks to Cash Out of 4-Star Apartments

Investors Still Competing for Multifamily Properties
May 4, 2018

Miami-based AHS Development Group, eager to capitalize on continued strong demand for multifamily properties, is putting The Place at Dania Beach on the market.

The firm hired Cushman & Wakefield to find a buyer for the 4-Star multifamily community at 180 E. Dania Beach Blvd. in Dania Beach, FL, south of Fort Lauderdale. There is no asking price.

The 144-unit, seven-story complex is fully occupied, according to the brokerage.

AHS completed the property last year. It has 6,771 square feet of ground-floor retail space, a rooftop pool and amenity deck. Units average 890 square feet with asking rents around $1,784 per month, according to Cushman & Wakefield.

Cushman brokers could not be reached for additional comment, but Robert Given said in a statement that the property’s location just east of Federal Highway is perfectly positioned near Dania Beach’s emerging downtown and the beach.

Demand for rentals began to soar in 2012 following the end of the six-year housing bust. Former homeowners couldn’t qualify for mortgages, while some people chose not to buy homes after getting burned in the downturn. As a result, developers brought thousands of units to market after multifamily construction all but stopped during the financial crisis and Great Recession.

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Pamela Stergios, an analyst covering the South Florida market for CoStar Market Analytics, said multifamily investment activity in the market remained strong last year, even though 2016 was the likely peak of the latest cycle.

The Fort Lauderdale metro topped the Miami metro for the highest volume of multifamily trades over the past 12 months, with $1.6 billion in sales versus Miami’s $1.2 billion, CoStar data shows.

Because many of the highest-quality properties traded hands in 2016, competition among investors has helped to drive prices higher, Stergios explained.

“We may have seen this happening in the record price-per-door achieved by the Amaray at Las Olas sale last year,” she said, recalling the mid-2017 disposition by Rockefeller Group and Stiles Realty that closed at roughly $526,000 per door.

Slight increases in homeownership rates in South Florida and the nation in the first quarter of 2018 aren’t likely to dampen demand for rental housing in the near term, Stergios added.

The homeownership rate for South Florida, rising to 58.3 percent from 58 percent at the end of 2017, has remained relatively flat for the past three years. But Stergios said it’s worth watching over the next few quarters to determine if a sustained increase impacts the multifamily sector.

Paul Owers, South Florida Market Reporter  CoStar Group   
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