Wafra Sells Milagro Rentals in Miami to Pantzer Properties
Pantzer Properties scooped up the Milagro apartment building in Miami for $97.5 million, marking the firm’s second multifamily purchase in the city in six months.
New York-based Pantzer bought the six-story building at 2263 Southwest 37th Avenue from Wafra, according to records and real estate database Vizzda. Pantzer took out a $58.5 million loan from JLL Real Estate Capital.
The deal for 237-unit Milagro breaks down to $411,400 per unit. The 407,000-square-foot building was developed in 2013 on 1.6 acres, according to records and Vizzda. The property is a block east from Coral Gables.
Wafra bought the property for $78.2 million in 2017, meaning the firm sold the building for nearly 25 percent more than it paid.
Milagro offers one- to three-bedroom apartments with monthly rents ranging from $2,460 to $3,995, the property’s website shows.
In November, Pantzer bought the newly built The Boulevard apartment building at 5700 Biscayne Boulevard in Miami’s MiMo Biscayne Boulevard Historic District for $175 million. Sellers Arnaud Karsenti’s 13th Floor Investments and Ben Mandell’s Tricera Capital developed the eight-story building with 282 units and about 30,000 square feet of retail.
Led by Fawaz Al-Mubaraki, Wafra is an investment firm focusing on alternative finance, private equity, venture capital, real estate and strategic partnerships, according to its website. It currently manages roughly $31 billion in assets and commitments. Wafra is based in New York and also has offices in London, Kuwait and Bermuda.
In November, Wafra sold The Nathaniel rental and retail building at 138 East 12th Street in New York’s East Village for $56.8 million. The deal represented a $40 million-plus loss in value, as Wafra sold The Nathaniel for 42 percent less than it had paid in 2015.
Pantzer is a multifamily owner and operator, with a portfolio of more than 9,000 units in 30 properties along the East Coast, according to its website. Jason Pantzer and Jordan Pantzer are co-CEOs.
Pantzer’s recent purchase of Milagro comes during a dry spell for South Florida multifamily deals. High interest rates have put the kibosh on the commercial real estate investment sales flurry the tri-county region experienced last year and in 2021. A bid-ask gap emerged because sellers still expect high offers for apartment buildings amid strong rental demand, but buyers can’t pony up as much because of high financing costs.
Among the few multifamily deals that closed this year, GID paid $56 million this month for the 240-unit garden-style Windsor Biscayne Shores complex at 12010 Northeast 16th Avenue in Miami’s Biscayne Shores neighborhood.
In April, Redwood Dev Co paid $30 million for 75 nearly finished townhouses near Opa-locka, with plans to convert them into workforce rentals. Lennar developed the homes at 2601 Northwest 119th Street as part of its larger residential project on the former Westview Country Club golf course.
