Transaction highlights how capital continues to flow into tertiary markets despite market uncertainty
MIAMI, FL (April, 2020) – Amidst market turmoil from the COVID-19 crisis, buyers and sellers are facing new challenges in completing transactions. However, despite complexity in the transaction and lending environment, Colliers International Florida’s Virgilio Fernandez, Mitash Kripalani, Julian Zuniga and Gerard Yetming closed on a $3.475 million sale of a 36-unit multifamily apartment community in Model City for a seller and a local buyer.
Colliers International represented the seller in this transaction. The owner held the property for a few years and determined marketing conditions remained favorable for a sale. The Colliers team tuned the marketing toward the optimal buyer pool, ultimately identifying the superior buyer. The portfolio, located at 820-844 N.W. 70th St., includes four contiguous garden-style apartment buildings with a mix of one-bedroom and two-bathroom units.
“We’re pleased to have been able to identify this ideal match for our seller, who realized significant value appreciation in the last few years,” said Fernandez, who served as lead broker in the transaction. “Buyers are beginning to focus on tertiary markets, like Model City, since the primary and secondary markets remains with a high barrier to entry with sub-6 percent returns. In tertiary markets, buyers can enter at lower prices and often generate superior returns. In these submarkets, more room for appreciation exists as rents have been increasing year over year.”
The transaction faced additional challenges with the COVID-19 crisis happening. The crisis backdrop forced changes to the lending environment and underwriting process, yet the Colliers team was able to work through the timely issues with buyer and seller.
For more information, Virgilio Fernandez can be reached at 305 613 4507.