Ortsac Capital Group has acquired a 206-unit apartment complex in Pembroke Pines for $52.5 million, representing a modest discount compared to the property’s purchase price six years prior.
This transaction, which reflects a 5.6 percent reduction in price, comes as South Florida’s multifamily market slows following the post-pandemic surge, and as higher interest rates continue to affect investment activity.
Ortsac, led by Bobby and Sofia Castro, purchased the Ventura Pointe apartments at 7850 Pasadena Boulevard from Dallas-based Lloyd Jones, according to public records and the real estate data provider Vizzda. The sale price equates to approximately $254,854 per unit.
As part of the deal, Ortsac took over the seller’s existing $38.6 million loan from MetLife Real Estate Lending, then refinanced it through Fannie Mae, increasing the total financing to $45 million.
Ventura Pointe was completed in 2018 on nearly 10 acres and comprises two five-story buildings and two four-story buildings, as reported by Vizzda. The property was developed by Palm Beach Gardens-based Eastwind Development.
Lloyd Jones, under the leadership of Christopher Finlay, paid $55.6 million for Ventura Pointe in 2019, according to records.
The company, which invests in multifamily and senior housing, has developed, owned, and managed approximately $1.2 billion in multifamily assets since 1990, based on its website.
Based in Fort Lauderdale, Ortsac is a private family office operated by the Castro family, including their children and grandchildren. According to its website, Ortsac oversees a portfolio exceeding $700 million in multifamily assets and invests in additional commercial real estate. Bobby and Sofia Castro, who describe Bobby as a self-made entrepreneur, previously founded and sold Bankers Healthcare Group. The couple also started Stack and Rack, a three-day multifamily investment bootcamp, as noted on their LinkedIn profiles and Bobby’s website.
In 2021, Ortsac sold the 368-unit Lakeview Flats apartment complex at 8800 Northwest 78th Court and 8900 Northwest 77th Court in Tamarac for $69 million. That same year, the company also sold the 368-unit Golfview Flats in Sunrise at 8445 Springtree Drive for $15 million.
South Florida’s multifamily sector experienced substantial growth in the years following the pandemic’s onset, propelled by an influx of residents from other states that fueled record demand and historic rent increases.
However, as developers responded to this demand with numerous new projects, the region reached a record 18,600 completed units last year. This surge coincided with a slowdown in the arrival of new residents, resulting in slower lease-ups and declining rents. According to Realtor.com, the median asking rent in the tri-county area dropped 3 percent year-over-year in October.
While the Federal Reserve has reduced its benchmark rate four times over the past two years, it had previously enacted 11 significant rate hikes in 2022 and 2023. This has left some landlords struggling to refinance maturing loans or keep up with obligations on floating-rate debt. Meanwhile, some lenders have pulled back from issuing new loans, focusing instead on extensions and forbearance negotiations with their current borrowers.
As a result, discounted multifamily transactions are increasingly appearing across South Florida.
For example, in September, Waterton Residential sold the 427-unit Solena West Miami complex at 2001 and 2101 Ludlam Road/Southwest 67th Avenue for $111 million, a 4.7 percent discount from its previous $116.4 million valuation. Waterton had acquired the two-building property in separate transactions in 2016 and 2017.
Last year, Rreef Property Trust sold the 368-unit Marela complex at 250 Northwest 130th Avenue in Pembroke Pines for $110 million, 9 percent less than what it paid for the asset in 2021.
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