Miami company buys two multi-family developments for $25 million
By Yudislaidy Fernandez
A Miami-based real estate company, with the financial support of private investors, has acquired two multi-family developments totaling 460 units for $25 million.
CFH Group, a realty development and management firm, announced Tuesday purchase of the two rental properties on Florida's East Coast and said it has plans to buy more.
Tomas Cabrerizo, chief executive officer of CFH, and real estate investor Sheldon Lowe, co-developer of the Grand Bay Towers in Key Biscayne, bought for $18.7 million Island Club Apartments, a 260-unit rental community at Atlantic Avenue in Pompano Beach. Financing was by SunTrust Bank.
"We had been looking at this property for a while. We were able to get it at a reasonable price that we felt made sense in today's market," Mr. Cabrerizo said Tuesday. "It's going to take time to stabilize the asset as the market is very tough, but in the long term it is going to be a good investment."
The rental property, at 96% occupancy, encompasses two-story residential buildings, a clubhouse, fitness center, two tennis courts, pool and sauna. Unit floor plans range from one- to two-bedrooms of 750 to 1,125 square feet.
Mr. Cabrerizo, along with investment partner Maurice Cayon, principal of Hialeah-based CD Group, also purchased for $6.3 million 200-unit complex Dunes Apartment Homes in Indian Harbour Beach, 15 miles south of Cape Canaveral. This acquisition was financed by mortgage giant Freddie Mac.
Located near the beach, the residential complex is 99% occupied and features one-, two- and three-bedroom floor plans. Amenities include two outdoor pools and a fitness center.
Both residential buildings were bought from AIMCO, a large owner and operator of apartment communities in the US headquartered in Denver.
CFH Group, at 3850 Bird Road, is to manage the two rental properties, Mr. Cabrerizo said, which are to undergo interior renovations as well as improvements in the common areas to increase their value.
"Both properties need lipstick," he says — they need makeovers — adding the two are long-term investments for the company.
CFH uses an in-house renovation program to remodel and reposition its assets. Affiliates Paramount Depot and Paramount Nursery supply building materials and the landscaping to refurbish the group's residential and commercial properties.
Investors Mr. Lowe and Mr. Cayon, Mr. Cabrerizo noted, are his partners in other multi-family property investments.
Earlier this year, he said, Mr. Lowe and he purchased Harbour Key, a 300-residence complex in Kendall.
He says he plans to acquire more multi-family developments in the remainder of this year and in 2010 to grow his residential portfolio.
Operating since 1995, CFH Group has acquired and operated 15,000-plus residential units and more than 2 million square feet of commercial real estate throughout the Southeast.
The focus now is on the housing market, he said, as the company is "doing much better in the residential product than we are in retail."