27707 South Dixie Highway, Homestead, FL
Completion Date: 2010
Net Rentable Area: 48,200 S.F.
Number of Buildings: 4
Asset Type: Multifamily
Card Sound Condominium is a 105-unit condominium located at 27707 South Dixie Highway in Homestead, Florida.
Ytech acquired this property in February 2012 from Community Bank of Florida after the financial institution received fee simple title following foreclosure. At the time, the project was stalled with only three of the four buildings developed.
Moreover, the former management team had failed to secure sufficient tenants. Despite these challenges, Ytech decided to move forward with the opportunity, which involved completing the construction and development process to include condominium standard features and amenities. Significant resources were spent finalizing the development and construction process. Upon completion, Ytech leased all of the condominium units and created a program that managed the property as a multifamily rental complex. The project was located in a fundamentally strong submarket with a historical vacancy of only 3.5 percent, one of many reasons why Ytech decided to proceed with the purchase.
Ytech assembled a new management team and placed emphasis on the marketing and re-positioning of the site. Strategic alliances with Florida Power and Light and the Veterans Affairs Supportive Housing Agency provided enough high-quality tenants to fully lease the project in less than 60 days. Prior to acquisition, Ytech learned that FPL would be conducting extensive upgrades to its Turkey Point Nuclear Plant, which would in turn generate more than 5,000 direct and indirect job opportunities.
The property was conveniently located for these prospective employees as it is only 11 miles east of the plant, just south of the Biscayne National Park. In addition, Ytech’s management team approached the Department of Veteran Affairs (VA) and the director of the Veteran Affairs Supportive Housing (VASH) program in Florida and was able to provide safe housing for many veterans and their families at Card Sound Condominium.
Ytech’s strategy was to provide a new investor with the opportunity to acquire a newly built, income-producing property that would not be subject to any HOA issues and could also be sold individually to condominium buyers at a future point. Although the condominium documents had been filed on the property, no attempt was made to sell the units individually.
Ytech sold the asset in 2014 at an exit capitalization rate of 5.8 percent, at which point the project had reached 95.3 percent occupancy.