Goldman Sachs, Kerra Buy Separate Broward Rental Complexes

A pair of Broward County apartment complexes traded hands, as the South Florida multifamily investment sales and leasing market muscles its way back after years of slower activity. 

In the bigger deal, New York-based Goldman Sachs, through an affiliate, paid $154.5 million for the 397-unit Modera Academical Village I at 3440 Southwest 76th Terrace in Davie from Boca Raton-based Mill Creek Residential, according to records and real estate database Vizzda. In Pompano Beach, Aviara Properties sold the 228-unit Aviara East Pompano at 1611 South Dixie Highway to Orlando-based Kerra Investments for $73 million. 

The Davie property consists of an eight-story building  on 3.1 acres, Vizzda records show. Mill Creek completed development of the project last year. 

Its recent trade breaks down to $389,169 per door. 

The Pompano Beach complex has a pair of eight-story buildings and a six-story building completed in 2024 on a 5.1-acre site, Vizzda records show. Kerra, led by Revital Kling and Eliav Kling, assumed the seller’s debt and bumped it up to $58 million. Ladder Capital is the lender. 

Aviara’s recent sale price equates to $320,175 per unit. 

Multifamily investment sales picked up in the first half of this year, with deal volume reaching $2.5 billion in South Florida, a 19.4 percent increase year-over-year, according to Avison Young. 

But market watchdogs warned this may be due to properties put under contract late last year and only closing this year. Inflation and elevated interest rates, including fears of another rate hike expected next week, are playing a role. 

On the leasing front, demand for South Florida apartments finally surpassed supply after the market felt the sting of oversupply in the three previous years. 

In the 12-month period that ended in the second quarter, new leasing reached 13,774 units, edging past the 12,751 units completed, according to CoStar Group. But CoStar analysts also warned that the scales may tip again late next year when nearly 28,000 units are expected to be completed. 

Landlords had to increase concessions and decrease rents due to oversupply in recent years. Realtor.com’s July rental report showed South Florida’s median asking rate hit $2,279 a month, or a 1.3 percent decrease from the same month last year. 

In other recent sales, Thomas Neary’s Bowery Properties paid $65.5 million for the Cascades at the Hammocks at 10605 Hammocks Boulevard in unincorporated Miami-Dade County. The seller was Grand Peaks Properties. 

Also, Fairfield Residential bought an 812-unit West Palm Beach apartment complex for $208 million, and Harbor Group International dropped $109 million for an over 500-unit apartment complex near Zoo Miami. 

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