Conversion Potential Claims Two Multifamily Assets

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FORT LAUDERDALE, FL-In the continuing tightening of rental multifamily properties due to condo conversion, two small 1960-era apartment complexes have sold for potential conversion. In separate, unrelated transactions, La Belle Harbor Apartments here and Eden House in Hollywood command $4.8 million and just shy of $5.6 million, respectively.

The 30-unit La Belle Harbor at 6540 NE 18th Ave. is in one of East Fort Lauderdale’s most desirable areas, according to Gene Berman, SVP and regional manager of the local office of Marcus & Millichap. It was built in 1965 and commanded $160,000 a unit, which is well above the median price of $98,000 a unit, according to an October 2005 M&M report. And, that median was a 24% hike over the median-per-unit selling price for multifamily assets here the year before. Brandon Rex, senior investment associate with Marcus & Millichap, listed the property on behalf of Goodson Investments Inc. David Luther, senior associate in the same office, secured and represented the buyer, identified as Labelle Villas LLC.

Luther and David Bradley of Marcus & Millichap listed Eden House, a 44-unit property at 3601 Van Buren St. in Hollywood, for Florida Coast Properties, LLC. The buyer, AJ Conversions, was represented by the same duo and paid $126,818 a unit for this asset. It was built in 1968, and, according to Luther, “is extremely well maintained.” Because extensive building upgrades have been done, he says it represents “an outstanding opportunity for a condominium conversion with minimal costs.”