Private credit firm Favo Capital bought a 277-unit apartment tower facing Young Circle in Hollywood for $190 million.
The deal marks one of the priciest multifamily investment sales so far this year in South Florida.
Lauderhill-based Favo bought the 22-story 1818 Park apartment building with ground-floor retail at 1818 Hollywood Boulevard in an all-stock and assumption of liabilities deal, according to a Favo news release. Seller GCF Development, a Hollywood-based firm led by Charles “Chip” Abele, obtained a long-term equity stake in Favo as part of the deal.
GCF completed 1818 Park in 2022 after yearslong delays due to litigation, the Great Recession and permitting issues. An entity led 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, records show.
1818 Park consists of studios, one-bedroom and two-bedroom units, according to its website. Monthly rents range from $1,640 to $3,738.
Favo, led by Vincent Napolitano, provides alternative revenue-based funding to small and medium-sized businesses nationwide, the release says.
South Florida’s multifamily market has calmed from the boom of recent years that was fueled by an influx of out-of-staters, unprecedented apartment demand, record rent growth and a flurry of investment sales. Over the past two years, elevated interest rates and inflation have curbed deal activity, while rents have slightly declined due to a supply overhang.
In June, Spanish billionaire Amancio Ortega paid $165 million for the 44-story, 259-unit Veneto Las Olas apartment tower at 201 South Federal Highway in downtown Fort Lauderdale.
This month, Fort Worth, Texas-based Olympus Property paid $45.9 million for a nine-story, 132-unit apartment complex at 1420 Northwest 15th Avenue in Miami’s Allapattah. Also, Aventura-based Category Five Real Estate bought a 184-unit multifamily portfolio in Sunrise consisting of 26 one-story and two-story buildings for $32.3 million.
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