MIAMI--()--Miami-based Fifteen Group has recently completed several opportunistic investments totaling $65 million of all-cash transactions in its target markets of Greater Miami and Greater Los Angeles. The acquisitions are consistent with Fifteen Group's strategy of acquiring well-located, top-quality properties as the real estate market recovers.
“We are very pleased with our new investments in Los Angeles”
Fifteen Group has made several prominent land investments in Miami, purchasing distressed debt instruments on three assets and acquiring the direct fee interest on two others. Fifteen Group purchased the loan on over six acres of land adjacent to the Midtown Miami development; a two-acre site that can accommodate 300 units fronting Biscayne Bay originally planned for the Ice condominium tower; and the final judgment secured by both the remaining unsold units in the Platinum condominium building and the 2.65-acre bay-front site originally planned for the second phase of Platinum.
Fifteen Group also recently purchased the defaulted debt on a property at the gateway to Miami’s burgeoning Design District. Late last year, Fifteen Group purchased a one-acre vacant land parcel and adjacent 8,400-SF office/retail building in the same neighborhood, at the northeast corner of North Miami Avenue and 36th Street in the Midtown area. The site was originally planned for a 26-story condominium tower, but current zoning allows for a variety of uses.
"Our recent acquisitions reflect our belief that the corridor connecting downtown to the Design District will continue to become increasingly desirable areas for future development," said Mark Sanders, co-founder of Fifteen Group. "As condominium supply continues to dwindle, especially for waterfront product, and the momentum continues growing within the Design District, Midtown, and Omni areas, we believe these sites are well-positioned for the next cycle of development."
In addition to its Miami-area investments, Fifteen Group also acquired a 268-unit multifamily rental complex in Naples in the fourth quarter of 2010. The complex, now known as Meadow Brook Preserve, was purchased from Florida Housing Finance Corporation. The property was originally constructed in 1997. Fifteen Group has made significant capital improvements, utilized aggressive asset management and improved cash-flow nearly five-fold.
Greater Los Angeles
Two recent transactions by Fifteen Group also highlight the firm's appetite for well-located, opportunistic transactions in high-barrier-to-entry markets in Greater Los Angeles.
In July, Fifteen Group acquired a 1.44 acre development parcel on Rowena Avenue in Los Angeles' highly desirable Silver Lake area. The parcel of land was purchased from the previous developer who had planned a 60-unit mixed-use condominium development, along with ground-floor retail. Plans for the development stalled with the market downturn, and Fifteen Group was able to purchase the site on an off-market basis.
In mid-September, Fifteen Group acquired Morton Village, a 1.0 acre development site in the Echo Park neighborhood of Los Angeles, for the development of an 18-unit small lot subdivision. Fifteen Group plans to have building permits by the first quarter of 2012.
“We are very pleased with our new investments in Los Angeles,” said Ian Sanders, co-founder of Fifteen Group. “These are exceptionally located properties with tremendous upside.”
Also in Los Angeles, Fifteen Group continues to actively pursue its re-entitlement of the Wyvernwood Garden Apartments, a 1,200 unit rent-stabilized apartment community in the Boyle Heights community acquired by the firm in 1998. Known as the Boyle Heights Mixed-Use Community Project, the community-minded development is planned to include up to 4,400 residential units, 300,000 square feet of retail and office space, 25,000 square feet of community civic space, and 24 acres of parks and open space. The project represents a $2 billion investment, and would create more than 10,000 construction-related jobs and 2,800 permanent jobs while generating $25 million in annual tax revenue to support vital public resources.
About Fifteen Group
Fifteen Group is a family-owned real estate investment firm based in Miami, Florida. Fifteen Group's investment activities are opportunity-driven, value-added acquisition and development projects. Historically, Fifteen Group concentrated primarily on the multifamily sector, but has evolved to include expertise in the office, retail, mixed-use, industrial, and land development sectors. Currently the firm invests in all major real estate asset classes, in real estate secured debt, and in corporate private equity transactions. Fifteen Group (www.fifteengroup.com) also has offices in Los Angeles.