Blackstone Expands Portfolio with $116 Million Purchase of Elan Solea in Hialeah
Miami, FL – In a significant move within the multifamily real estate sector, Blackstone (BX), a leading private equity firm, has finalized the acquisition of Elan Solea, a garden-style apartment complex in Hialeah, Miami-Dade County, for $116 million. This investment marks another strategic entry by Blackstone into the vibrant South Florida housing market.
Property Details
Elan Solea spans an impressive 400,640 square feet and comprises 359 residential units. Situated at 17545 Northwest 94th Court, the property conveniently faces Interstate 75, just south of its junction with the Florida Turnpike, position it favorably for accessibility.
Financial Overview
The transaction translates to an approximate cost of $323,000 per apartment. The sellers, a collaborative effort between the Carlyle Group, Greystar, and Butters Construction, had previously secured a $69 million construction loan from Fifth Third Bank in 2022 to facilitate the development of this 10-building complex, which was completed in 2023.
Historical Context of the Site
In a prior transaction in 2021, Greystar and Butters acquired the 45-acre site from Terra and New Valley. The latter retained 30 acres for developing a separate 460-unit multifamily property. Additionally, Butters Construction utilized the remaining 25 acres to erect a 507,170-square-foot industrial complex, which was then sold to Ares Management for $147 million. Notably, around 10 acres of the Elan Solea property remain vacant and are now under Blackstone’s control.
Blackstone’s Multifamily Market Moves
Blackstone has recently intensified its focus on multifamily investments. This includes a landmark acquisition of Air Communities for approximately $10 billion, marking its largest purchase in the residential segment thus far. The firm’s footprint in South Florida also includes high-profile rental properties located in prime areas such as Edgewater, South Beach, and Fort Lauderdale.
Market Dynamics
Despite aggressive purchasing, Blackstone has also engaged in divesting certain properties in South Florida. Notably, in November, the firm sold a 349-unit garden-style apartment in Miramar for $121 million.
As the real estate market continues to evolve, Blackstone’s strategic investments in multifamily properties underscore its commitment to maintaining a robust presence in key regional markets. Representatives for both buyers and sellers have yet to comment on this recent transaction.
For inquiries, contact Julia Echikson.