Waterton Residential has sold the District West Gables apartment complex in West Miami for $111 million, representing a 4.7 percent decrease from its purchase price nearly ten years ago.
The buyer, Federal Capital Partners (FCP) based in Chevy Chase, Maryland, acquired the 427-unit property from Chicago-based Waterton. The transaction was confirmed through public records and real estate database Vizzda. The sale price averages about $259,953 per unit.
Waterton, led by CEO David Schwartz, initially bought the complex in two transactions: the first building at 2101 Ludlam Road for $57.4 million in 2016 after it was completed by Estate Companies; and the second building at 2001 Ludlam Road for $59 million in 2017. Both buildings are seven stories tall and were developed under Estate’s Soleste multifamily brand by Robert Suris and Jeff Ardizon.
District West Gables sits on a 4.1-acre site and includes studios as well as one- to three-bedroom apartments. Current asking rents are not listed publicly.
This deal marks FCP’s third investment in South Florida multifamily properties within a year. In December, FCP purchased the Solena Miramar complex in Miramar for $67.5 million, followed by acquiring Arium Sunrise in Sunrise for $90 million this February.
According to FCP’s website, since its founding in 1999 under CEO Garland Faist, the firm has invested or financed over $14.6 billion nationwide and currently manages six funds totaling $4.2 billion in assets.
FCP plans to renovate common areas, amenities, and apartments at District West Gables and has hired Greystar to manage the property. Records indicate that no mortgage was recorded with this purchase, suggesting it may have been an all-cash transaction.
The sale comes during a period of reduced activity in South Florida’s multifamily market compared to recent years’ high demand during the pandemic. Over the past two years, higher interest rates and an oversupply of new developments have slowed sales activity and stabilized or decreased rental prices across the region.
Developers completed a record number of new apartments last year—18,600 units—outpacing net leases signed at 15,000 units according to CoStar data (https://www.costar.com/).
Recently there has been an increase in sales activity as investors use strategies such as all-cash purchases or loans from Freddie Mac and Fannie Mae instead of traditional bank financing. Notable recent deals include Amancio Ortega’s all-cash acquisition of Veneto Las Olas for $165 million; Related Fund Management securing a Freddie Mac loan for its $116.9 million purchase of Aura Delray Beach; and The Milestone Group assuming an existing Fannie Mae loan while buying Casa Brera at Toscana Isles near Boynton Beach.
“At District West Gables, FCP plans renovations to common areas, amenities and apartments,” according to the firm’s news release announcing the purchase.
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