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The buyer had signed contract on two apartment buildings last year for $298 million
Air Communities has bolstered its portfolio with the $250.5 million purchase of Southgate Towers in Miami Beach.
Air, or Apartment Income Real Estate Investment Trust, paid $223.5 million for the pair of 14-story apartment buildings at 910 West Avenue and $26.9 million for the garage with ground-floor retail at 959 West Avenue, according to records . The Gumenick family’s Gumenick Properties sold both properties.
Publicly traded Air said it had the property under contract in its third-quarter earnings call last year. At the time, it quoted a purchase price of $298 million. Air did not immediately respond to a request for comment on the price change.
The deal for the 495-unit Southgate breaks down at nearly $452,000 per apartment.
This is the first time Southgate Towers has traded since the Gumenick family completed the buildings sometime in the late 1950s or early 1960s. At the time, the project marked the first high-rise apartment complex in Miami Beach. The late Nathan Gumenick started the signature company in Richmond, Va., and is now based in Richmond and Miami Beach, with grandson Randy Gumenick as president.
The pair of L-shaped buildings sit on 4 acres overlooking Biscayne Bay and Miami.
Southgate offers studios as well as one- to three-bedroom apartments, with monthly rents ranging from $2,500 to $7,250, according to Apartments.com.
The five-story garage, which sits across from Southgate, was completed in 2002 on 1.3 acres, property records show. Retail tenants include Caffe Umbria, Pure Pharmacy, Giotto Maestro Della Pizza and Oliver’s Bistro.
Air, based in Denver and led by Terry Considine, spun off in 2020 from Aimco as an apartment communities REIT.
Air placed at least two other bets on the South Florida multifamily market last year. Purchased The District at Flagler Village building at 555 Northeast Eighth Street in Fort Lauderdale’s Flagler Village for $173 million. Air also bought the 28-story, 296-unit Watermarc in Biscayne Bay at the northeast corner of North Bayshore Drive and Northeast 21st Street for $211 million.
The tri-county region’s rental market has boomed over the past two and a half years, thanks to an influx of population that has pushed rents to new heights. A recent report from RentCafe ranked Miami-Dade County as the “most competitive” apartment market in the US. An average of 32 renters competed for an available unit, well above the national average of 14 renters competing for an apartment.
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