Estate Investments Group (EIG), the developer that sold a multifamily rental building in West Miami in June for a record-setting amount, has sold another rental apartment complex in the same area — this time before leasing a single unit.
The 221-unit Soleste West Gables II, located at 2001 Ludlam Rd., was purchased by the Chicago-based investment firm Waterton for $59 million, or $267,000 per unit. The sales price of the 195,000-square-foot building works out to $302 per square foot.
Fortune Capital Partners and Mattoni Group partnered on the sale with EIG.
The sale closed Friday upon issuance of certificate of occupancy but before stabilization, meaning no one has rented any of the apartments yet.
Usually, investors wait until an apartment complex is fully rented before purchasing a property.
“It really is very unusual to sell these buildings empty like this,” said Robert Suris, founder and principal of EIG. “Waterton had previously purchased Soleste West Gables I in 2016 [for $57.4 million] and they wanted to secure phase two, so they came in early to lock up the sale.”
Although it takes up less than one square mile and has one of the smallest tax bases in the county, West Miami had the biggest surge in property values in Miami-Dade in 2017 — 28 percent. It is located between Southwest 57th and 67th avenues and Southwest Eighth Street and Coral Way.
“West Miami is the smallest city in Miami-Dade County, but it’s a very convenient place to live because of its location,” Suris said. “A lot of developers have bypassed this area because they can’t charge rents high enough to cover their investments. West Miami is a middle-class neighborhood with an average household income of $38,000.”
Suris said EIG, which specializes in multifamily, reduces the costs of its buildings by keeping all development functions — including architecture and construction — in-house, eliminating the need for outside contractors or middlemen.
In June, EIG sold the 196-unit Soleste Club Prado for $61 million, or $360 per square foot. That building was rented out to 95 percent capacity at the time of the sale, with rents ranging from $1,680 for a one-bedroom to $3,475 for a three-bedroom.
Waterton has not yet determined the rent prices for the new building.
EIG has several other multifamily buildings under development or construction in West Miami, including the Soleste Twenty2, a 338-apartment complex that will employ the micro-unit approach (400-square-foot studios and 550-square-foot one-bedrooms) and the 310-unit Soleste Alameda.