Art Falcone’s firm sold The Rise Flagler Village, a 30-story apartment tower in South Florida, for $108 million to an affiliate of New York-based Journey Capital, according to records and the real estate database Vizzda. The sale took place amid a recent increase in multifamily property deals in the region despite an oversupply of rentals.
The transaction equates to about $310,000 per unit for the 348-unit building. Journey Capital, led by Peter Calatozzo, financed the purchase with an $88.3 million Fannie Mae loan that matures in 2031. The Rise was completed in 2021 on a 1.4-acre lot and offers studios as well as one- to three-bedroom apartments with monthly rents ranging from $2,300 to $4,500.
Falcone’s entity originally bought the development site for $9.4 million in 2015 and secured a $57 million construction loan two years later. Despite recent challenges facing South Florida’s multifamily market—including record new completions totaling about 18,600 units delivered last year and slowing demand from out-of-state renters—investment activity has continued.
Average monthly rent across the region dropped by 3.3 percent year-over-year to reach $2,235 in February according to Realtor.com data cited in the release. Some landlords have responded with concessions such as several months of free rent; however, The Rise’s website does not list any such incentives.
Other notable transactions this year include Maxx Properties’ acquisition of The Ellery complex for $70 million and Griffis Residential’s purchase of Griffis North Olive complex for $78.5 million as well as another building in Pompano Beach for $41 million. Dermot Company also paid nearly $132 million for The Quaye at Palm Beach Gardens complex.
Journey Capital is familiar with South Florida’s multifamily sector; last year it purchased a Plantation complex with over four hundred units for more than one hundred million dollars.
