Alvista Lauderdale - North Lauderdale, FL
April 01, 2019
Phoenix Realty Group Broadens Presence in Florida With Acquisition of 608 Multifamily Units
NEW YORK / NAPLES, FLA. / NORTH LAUDERDALE, FLA. (April 1, 2019) – Phoenix Realty Group (PRG), a national multifamily real estate fund manager, investor and operator, purchased two properties through affiliated entities, one on the east coast of Florida and one on the west coast, in the fourth quarter of 2018. Both properties were purchased with third party partners. Sabal Key, a 200-unit Class B multifamily apartment community in Naples, and Parrots Landing, a 408-unit Class B multifamily apartment community in North Lauderdale, will expand PRG’s presence in the state. PRG will operate both rental communities and plans to renovate, upgrade, and modernize the properties to offer an attractive option for tenants. Debt financing for Sabal Key was arranged by CIT Bank and by Berkeley Point Capital (now known as Newmark Knight Frank) for Parrots Landing.
Sabal Key will be rebranded Alvista Golden Gate under PRG’s proprietary brand, Alvista Communities®. The property was built in 1988 and comprises 25 two-story buildings on a 17.3-acre site. The attractive community offers several amenities, including a swimming pool and sundeck, a clubhouse, two lake-front decks, and a dog park. At the time of the sale, 21 units were unoccupied due to storm damage. Those units will be renovated and receive a rental premium for the upgrade.
“We believe there is significant upside to increase rents through the renovation of the down units, implementation of a comprehensive unit renovation plan, amenity upgrades, and operational and rent management improvements,” said Ron Orgel, managing director of acquisitions for PRG’s eastern United States region. “The previous owners had upgraded only three units, leaving a significant opportunity for us to renovate and enhance most of the remaining units.”
Orgel also emphasized the prime location of the property. “Sabal Key is within minutes of Interstate 75; beautiful white-sand beaches; upscale shopping; health care, government, and tourism employment centers; public and private golf courses; and a plethora of public recreational amenities.”
The property sits across the street from the Golden Gate Community Park, which features a large fitness center, a pool with water slides, athletic fields, a playground, and a large dog park.
Parrots Landing was rebranded Alvista Lauderdale and is consistent with PRG’s strategy to purchase larger apartment communities that offer competitive amenities in their respective markets. The property, built in 1986, comprises 17 three-story walk-up buildings on a 22-acre site with two swimming pools, a clubhouse and fitness center, tennis court, and picnic areas.
“PRG believes significant upside exists through the implementation of a comprehensive in-unit renovation plan, amenity upgrades, introducing typical charges for utilities, exterminator fees, admin fees, etc., and operational and rent management improvements,” said J. Michael Fried,
CEO and founder of PRG.
Located in the Miami-Fort Lauderdale-West Palm Beach metro area, the location offers convenient access to Broward County employment centers, 9 miles northwest of Fort Lauderdale and 12 miles southwest of Boca Raton. PRG also owns a nearby property, Alvista Pembroke Landings, in Pembroke Pines, Florida.
“Parrots Landing was ideal for our multifamily value-added strategy,” Fried said. “The previous owner didn’t upgrade amenities or apartment units, other than installing vinyl plank flooring in some units. We have an overall renovation program to improve the rental marketability of the apartments and the value of the property.”
With the acquisitions, PRG now owns five properties in Florida totaling more than 1,400 units.
About Phoenix Realty Group
Phoenix Realty Group LLC (www.phoenixrg.com) is a 20-year old firm focused on multifamily residential properties in higher barrier-to-entry and infill markets. The firm is headquartered in New York with personnel in California and Florida. The firm has three business lines: value-added,
new construction, and affordable housing. As of December 31, 2018, PRG has approximately $1.2 billion in gross real estate assets under management.