Real estate companies’ Pompano and Hollywood projects move forward
The Estate Companies is moving forward with two Broward County multi-family projects.
The South Miami-based company has secured final approval for a 253-unit Pompano Beach development at 208 North Federal Highway, and also secured an $80 million construction loan for a 324-unit apartment building in downtown Hollywood at 2001 Hollywood Boulevard.
The eight-story Soleste Pompano Beach will include studios, one- and two-bedroom apartments and live-work units, all at market-rate rents, according to a press release from Estate. The project will also include a 367-space garage and 11 parallel parking spaces on the ground floor, as well as 4,000 square feet of retail space comprised of retail and live-work units.
The facilities will include a swimming pool, a furnished terrace with a gym on the sixth floor and an open space with a picnic area, the statement said.
On Wednesday, the Pompano Beach Planning and Zoning Board unanimously approved plans for the nearly 2-acre vacant site. Estate has the land under contract for an undisclosed amount.
Construction will begin at the end of the third quarter and completion is expected in early 2024, according to the statement.
For its other Broward project, Estate secured the Soleste Hollywood Boulevard construction loan from the U.S. Bank National Association, records show.
The eight-story development will feature nearly 30,000 square feet of retail space and 475 parking spaces on 2.3 acres. Soleste Hollywood will incorporate the vintage ground floor vault that is part of the city’s first bank building on the property.
Estate paid $15.3 million in September for the development site, which also spans 2050 Tyler Street, as well as 115 and 121 North 21st Avenue. The property is in an opportunity zone.
The Pompano and Hollywood projects mark an expansion for Estate Companies, which previously focused on Miami-Dade County. Led by General Manager Robert Suris and Director Jeff Ardizon, Estate has transformed West Miami with the construction of several multi-family projects. He sold at least five, including Almeda West at 6320 and 6290 Southwest Eighth Street to Dallas-based Westdale Real Estate Investment and Management for $82.9 million last year.
Westdale also purchased Estate Blue Lagoon 7 at 5479 Northwest Seventh Street in Miami for $93.8 million last August, and Bay Village1 at 18301 South Dixie Highway in Palmetto Bay for $58.2 million in July. last.
In another sign that the company is expanding beyond Miami-Dade, the developer has paid $15.8 million for the 2.5-acre multi-family development site at 550 North Rosemary Avenue in downtown West Palm Beach in December.
Estate’s continued bet on apartment development comes in a robust South Florida market. Soaring home prices and an influx of regional newcomers have created pent-up demand, allowing landlords to push rents to new highs.
South Florida rents climbed 45.8% in May, year over year, to a median monthly rate of $2,843, according to a report by Realtor.com. In March, Miami recorded the largest rate increase in the country, of 58%, for the two years since the start of the pandemic.
Market strength fueled both investment sales and construction activity. In Pompano Beach, The Benjamin Companies purchased the Morea Apartments at 601 North Federal Highway for $145.5 million in February.
In April, Coral Gables-based Calta Group, led by founders and brothers Ignazio and Gaetano Caltagirone and managing partner Igor Blatnik, paid $9.5 million for the development site at 2215 Hollywood Boulevard. The Caltagirones, part of an Italian real estate family, left the family business and have been investing in South Florida since 2008. The Hollywood Project is their first multi-family venture.