Coral Grove Apartments 1200 SW 3rd St

Offers for Coral Grove Apartments shall be due by the end of business on Wednesday, October 30th, 2024. Please contact the listing agents for more details.
Coral Grove was originally constructed in 1964 as 80 units (10 x 8-unit buildings) all of which were 1-bedroom apartments. At some point in the prior chain of ownership, select units were combined and converted into 2 or 3-bedrooms and the total size was reduced to 73-operating units. It’s anticipated that an incoming investor would restore the property to its original 80-unit configuration, which creates a value-add scenario that should increase revenue.
The purchase price of $10,800,000 represents $147,945 per unit as 73 units and a basis of $135,000 per unit if converted back to the 80-unit configuration, price points that are nearly impossible to find anywhere in South Florida (especially for comparably-sized properties).
There’s a $6,491,000 assumable Fannie Mae mortgage in place, which offers an attractive, below market interest rate of 3.98%, which is interest-only until August 2029 and fixed through 2036. This gives an incoming investor piece of mind and predictability, regardless of what happens in the capital markets.
Coral Grove is being offered for sale below 9x current gross rents. This drops to a 7.7 GRM at market rates (as 73 units) and a 7.5 GRM as a conversion back to 80 units. It’s extremely rare to find multifamily properties below a 9 GRM anywhere in South Florida.
The property was built of concrete block and concrete roofs, which offer a substantial insurance savings over a traditional wood-truss roofing system.