Ares Pays $140M in South Florida’s Biggest Multifamily Deal This Year
By Julia Echikson May 20, 2024 3:08 pm
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In South Florida’s largest multifamily deal so far this year, global asset manager Ares Management (ARES) paid $139.7 million for a 284-unit property in Boca Raton, property records show.
Called Ceru, the 373,856-square-foot complex sits on 4 acres at 5205 Congress Avenue, north of Yamato Road. The property is 95 percent occupied, said a source with knowledge of the deal.
The cash sale comes out to just over $490,000 per unit.
The seller, Fort Lauderdale-based Mainstreet Capital Partners, completed the eight-story building in 2022, two years after purchasing the parcel and securing a $55 million mortgage from Pacific Western Bank, according to property records.
A representative for L.A.-based Ares Management declined to comment, while a spokesperson for Mainstreet Capital Partners did not immediately respond to requests for comment.
So far, South Florida’s other major multifamily deals have included Pantzer Properties’ $83 million purchase of a 245-unit property in West Palm Beach and Smith & Henzy Advisory Group’s $53 million purchase of 240-unit affordable housing complex in Boynton Beach.
But high interest rates have taken a toll on investors in the region. And these deals are far cry from the height of the pandemic, when Hines paid $430 million for the Gables Station development — 2023’s largest multifamily deal — and a joint venture led by Harbor Group International bought ParkLine Miami apartment complex for over $400 million in 2022.
Julia Echikson can be reached at jechikson@commercialobserver.com.
