Private credit firm Favo Capital has acquired a 277-unit apartment tower facing Young Circle in Hollywood, Florida, for $190 million. The transaction is among the most expensive multifamily investment sales in South Florida so far this year.
Favo, based in Lauderhill and led by Vincent Napolitano, purchased the 22-story 1818 Park apartment building at 1818 Hollywood Boulevard through an all-stock deal and assumption of liabilities. According to a Favo news release, GCF Development, the seller led by Charles “Chip” Abele and headquartered in Hollywood, received a long-term equity stake in Favo as part of the agreement.
The 1818 Park building includes ground-floor retail and offers studios as well as one- and two-bedroom units. Monthly rents range from $1,640 to $3,738.
GCF completed construction of 1818 Park in 2022 after experiencing delays caused by litigation, the Great Recession, and permitting issues. Records show that an entity managed by Abele first bought the site for $3.5 million in 2009 and sold it to another Abele-led entity in 2022 for $65.6 million.
Favo Capital provides alternative revenue-based funding to small and medium-sized businesses across the United States.
South Florida’s multifamily market has slowed following a period marked by high demand and rising rents due to an influx of new residents from other states. Over the past two years, higher interest rates and inflation have reduced deal activity while rents have slightly declined because of increased supply.
Other notable recent transactions include Spanish billionaire Amancio Ortega’s June purchase of Veneto Las Olas—a 44-story tower with 259 units—for $165 million in downtown Fort Lauderdale (https://therealdeal.com/miami/2024/06/12/spanish-billionaire-amancio-ortega-buys-fort-lauderdale-apartment-tower-for-165m/). This month also saw Olympus Property buy a nine-story, 132-unit complex in Miami’s Allapattah neighborhood for $45.9 million (https://therealdeal.com/miami/2024/07/05/olympus-property-pays-46m-for-allapattah-apartment-complex/) and Category Five Real Estate acquire a portfolio of 184 multifamily units in Sunrise for $32.3 million (https://therealdeal.com/miami/2024/07/10/category-five-buys-sunrise-multifamily-portfolio-for-32m/).
