Israeli group wants $26M for portfolio of Broward rentals
Asking price breaks down to $191,176 per home
September 29, 2016 01:30PMBy Sean Stewart-Muniz
1640 Northwest 26th Terrace, one of the homes in the portfolio, and Calum Weaver
It’s no secret that the multifamily market in South Florida has been hot this year, with $4 billion worth of property trades in 2016’s first six months alone. But what about single-family rentals?
One group of Israeli investors is hoping that the appetite for assets transfers to houses, as they’ve just listed 136 single-family homes in Broward County for $26 million.
The homes are spread throughout Broward, from as far south as Hollywood up to Deerfield Beach in the north. County records show they’re owned by a handful of separate holding companies, whose managing members are Shay Milech, Shay Atiya and Noam Hanoch Avrahami.
(Click to enlarge) Aerial of the portfolio from Cushman & Wakefield
The asking price breaks down to $191,176 per home, or just under $134 per rentable square foot.
Calum Weaver of Cushman & Wakefield, who’s marketing the portfolio, announced the listing Thursday. He told The Real Deal that the investors had assembled the homes over the past several years through auctions, foreclosures and straight-up sales.
They then spent $5.8 million on renovating much of the portfolio and brought its occupancy up to 98 percent. About half of the rentals are occupied by Section 8 tenants, he said. Rents average $1,639 per month for each home, bring in gross annual income of $2.7 million.
The most recent deal of this size was last year when private equity firm Cerberus Capital made its first foray into the landlord business by picking up 174 single-family homes in Broward from Five Ten Florida for $29 million. That deal was just part of Cerberus’s larger acquisition of Five Ten’s portfolio of 1,500 rentals spread throughout Florida, Illinois and Texas.
Source: The Real Deal