Executives at Houston-based Hines had eyed Gables Station in Coral Gables, Florida since it was first put on the market last February. They followed it as it went under contract with another buyer. Then, after that sale fell apart, they pounced, buying the 12-story, 495-unit building for $430 million in late July — the second-largest multifamily sale in South Florida history, according to Hines.
“When the capital markets shifted, the prior buyer wasn’t able to move forward,” Juan Jacobus, Hines’ director for South Florida, told Multifamily Dive. “So that is when we stepped in and purchased it at a price that is, in our view, more attractive than what this could have sold for a few months ago — before the change in debt markets and interest rates.”
For Hines, a prolific national developer that bought the asset through its Hines Global Income Trust vehicle, Gables Station checked a lot of boxes.
“This project has a lot of the ingredients that I think Hines would focus on if we were developing the asset ourselves,” Jacobus said.”It’s really in the DNA of Hines, which is placemaking. We saw this as the highest quality rental apartment community in Coral Gables and maybe all of Miami.”
The 1.2-million-square-foot project, developed by 54 Madison Partners and Nolan Reynolds International, includes studio, one-, two- and three-bedroom and penthouse units. Those apartments, which are 95% leased, are managed by Hines’ property management company Willowick Residential. Rents range from $2,919 to $13,864, according to ApartmentFinder.
The mixed-use development is unique. LifeTime Living, a publicly traded operator of health clubs across the country, manages the amenity spaces, an on-site 80,000-square-foot luxury athletic resort and a 25,000-square-foot coworking space, which residents receive access to with no additional charge. The property features a full-service LifeSpa, three resort-style pools, a full-service LifeCafe and a Kids Academy.
“It's really a 24/7 lifestyle destination,” Jacobus said. “People can live here and go throughout their entire day without having to leave the property.”
Since the pandemic, Hines has spent $1.8 billion across three developments and acquisitions in South Florida, including a 5.6-acre, 835,000-square-foot, office, retail and residential mixed-use urban village in Fort Lauderdale and South Flagler House, a Robert A.M. Stern designed boutique condominium project featuring two 28-story towers in West Palm Beach.
“We are highly committed to South Florida, both on the acquisitions and development side, and really looking to continue growing our footprint in this area,” Jacobus said.
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