Air Communities Buys Discounted Miami Beach Rental for $251M
By Julia Echikson January 10, 2023 5:07 pm
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Air Communities dropped $250.7 million for Southgate Towers, a waterfront residential complex in Miami Beach, property records show.
The residential portion features a 14-story building with 495 apartments and sold for $223.5 million. The 480,972-square-foot building is at 910 West Avenue, just south of 10th Street, facing Biscayne Beach in South Beach.
The deal also includes a five-floor parking lot, situated across the street, that sold for $26.9 million. The ground-floor retail counts Pura Vida, Oliver’s Bistro and Caffe Umbria as food tenants.
The purchase marks a 16 percent reduction from the original price — perhaps a sign that multifamily deals in South Florida are cooling, despite two years of skyrocketing rents.
In November, Air Communities, a publicly traded real estate investment trust that apartment heavyweight Aimco spun off in 2020, disclosed that it had the property under contract for $298 million.
The Virginia-based seller, Gumenick Properties, completed a $40 million renovation of the complex in 2016, according to the South Florida Business Journal. For its acquisition, Air assumed Gumenick’s $115 million mortgage from MetLife Insurance dating back to 2016, of which $101 million remains.
The Miami Beach deal is Air’s third acquisition in recent months in South Florida. In June, the Denver-based REIT paid $211 million for Modera Biscayne Bay, a 296-unit waterfront rental building in Miami’s Edgewater neighborhood. Six months later, it bought The District at Flagler Village, a 350-unit building in Fort Lauderdale, for $173 million.
Representatives for Air and Gumenick did not immediately respond to requests for comment.
Julia Echikson can be reached at jechikson@commercialobserver.com.
