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Deutsche Bank Takes Loss on South Florida Rental Property
New York-based Abacus secured $72M acquisition loan
Dirk Goergen, DWS Americas CEO, and Pembroke Pines, Fla. PHOTOS: Courtesy DWS Group; Getty Images
Deutsche Bank (DB) sold a multifamily property in Pembroke Pines, Fla., at a $11.5 million loss, property records show.
Abacus Capital Group paid $110 million for Marela Apartments, a 368-unit complex at 250 NW 130th Avenue, about a mile and a half west of Interstate 75. Completed in 1998, the 420,648-square-foot community sits on 21 acres.
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The New York-based investor secured from JLL a $71.5 million acquisition mortgage, which is backed by Freddie Mac (FMCC) that’s scheduled to mature in 2029, according to public documents.
Deutsche Bank’s asset manager, DWS Group, took a nearly 10 percent loss on the sale, having purchased the property for $121.5 million three years ago, per records.Â
While the exact cause for the loss in value remains unclear, rent growth in South Florida has slowed since the height of the pandemic, when an influx of Northerners relocated to the South. Interest rates and inflation have also increased operating costs for owners, though DWS Group did not appear to have a mortgage on Marela Apartments.Â
Representatives for DWS declined to comment, while a spokesperson for Abacus did not immediately respond to a request for comment. Â
Julia Echikson can be reached at jechikson@commercialobserver.com.
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