KVR Properties Sells Pompano Beach Rental at a Loss
By Julia Echikson August 24, 2023 6:12 pm
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KVR Properties sold a rental property in Pompano Beach, Fla., at a loss a year after purchasing it, in a sign that South Florida’s meteoric multifamily market may be coming back down to earth.
Woodward Properties acquired a 124-unit apartment complex at 520 E McNab Road, about half a mile west of Federal Highway, from KVR for $24.1 million, according to property records. The community, which sits on 4 acres, features eight two-story buildings that were completed in 1970.
CBRE (CBRE) Multifamily Capital supplied the buyer, a Pennsylvania-based investor, with a $12.6 million loan, which is scheduled to mature in 2030. The sale broke down to $194,355 per apartment.
KVR, a Coral Springs-based investor led by Arvind Reddy, had purchased the 105,746-square-foot community for $26.3 million in May 2022, netting a $2.2 million loss from the recent sale. This year, KVR spent an additional $50,000 remodeling the pool and paver deck, public records show.
Representatives for KVR and Woodward did not immediately respond to requests for comment.
The transaction comes as insurance premiums across the state have risen and the migration to the region has slowed since the height of the pandemic. In response, South Florida’s multifamily investment sales have cooled. The average price of a unit dropped by 18 percent to $341,196 during the first half of 2023 when compared to the same period a year prior, according to data from Berkadia.
Julia Echikson can be reached at jechikson@commercialobserver.com.
