CBRE, as exclusive advisor, is pleased to present the opportunity to acquire Doral Apartments (the “Property”)– a 112-unit property located at 1212 NW 82 Avenue in Doral, Florida.
Built in 1989 and situated on 3.3-acres, the property offers an exceptional value-add opportunity in one of Miami’s strongest rental markets. The property consists of 12 buildings and a large office/clubhouse and features 60 large studio units (which can be converted to one bedrooms); 28 one-bedroom units and 24 two-story two-bedroom units. The new owner can immediately begin a value-add program to reposition the 112 units to command from $2,000 to $2,600 per unit rents (depending on unit type).
CBRE predicts an estimated $2 million in value-add improvements, of which $1.2 million in unit upgrades including: hard surface flooring, cabinet fronts, popcorn and carpet removal, washers/dryers, and blinds. In addition, there is another $800,000 set aside for railings and roofs and converting the +/- 6,000 square office/clubhouse into offices and state-of-the-art gym. The property features a swimming pool, tennis court, fitness center, barbeque/picnic area and business center.
The property historically operated as the Doral Apartments providing nightly and extended stay rentals. Each unit provides apartment style suites which do not need to be reconfigured for apartment usage. The property will be delivered vacant at time of sale, which allows a new owner to immediately begin value-add enhancements. There are 60 studio units, which average 570 square feet, that can easily be converted to one-bedroom units by adding a demising wall. Current ownership is in the final stages of getting the property rezoned for multifamily usage and will deliver this revised multifamily zoning as a condition of close before sale. The property has individual unit folios which allow for future condo conversion potential.
The rezoning will be achieved through Live Local Act which in turn will require 40% of the units to be at or below 120% AMI rent limits as dictated by FHFC. The 2023 120% AMI rent limits of $2,323 for one bedrooms and $2,787 for two bedrooms are higher than our proforma value-add rents. Since our proforma market rents are below the 120% AMI rent limits, a new owner can save an estimated $260,000 in property tax savings by making all the 112-units at 120% AMI rent levels . This will allow for the 112 units to be taxed at 25% of the tax bill - $86,696 versus $346,780.
Doral Apartments central location to Miami International Airport, Palmetto Expressway and Dolphin Expressway provide residents with excellent connectivity to Miami’s major employment markets including Waterford Business District, Coral Gables, Miami Health District, Downtown Miami and Brickell. Doral continues to be among one of the fastest growing cities in the U.S with a population that has nearly tripled between 2000 and 2020. Ideally located proximate to Miami International Airport, SR 836 and SR 826, Doral has been historically identified as an office and industrial submarket. However, the landscape of the neighborhood has become much more urbanized in recent years with nearly $3B in recent and planned development to match the market’s unprecedented growth.
Doral Apartments represents a rare value-add Doral acquisition opportunity that will greatly benefit an opportunistic investor through the continued rapid transformation of Doral into a first-tier neighborhood within Miami-Dade