MIAMI, FL - Rockwood Capital, LLC, the private real estate investment firm, along with partners Duncan Hillsley Capital and Fortune Capital Management Services, announced today the acquisition of Everglades on the Bay, an 849-unit mixed-use condominium community located in downtown Miami. The new ownership acquired the development in a $141 million cash transaction. Rockwood's involvement is on behalf of investors in one of its private equity funds.
Source: Rockwood Capital
Everglades on the Bay, which also includes 58,000 square feet of retail space, has now been recapitalized as a result of Chapter 11 reorganization. South Florida-based Duncan Hillsley Capital, which initiated the deal, and Fortune Capital Management Services are Everglades' new managing partners. The original developer, Cabi Downtown, is transitioning the property to the new management and ownership.
The new owners' initial focus will be on capital improvements, building operations, and sales and marketing. To date, approximately 184 of the 849 Everglades on the Bay residences have closed. The development has been completed and a re-launch is planned for January.
"We strongly believe that improving economic conditions, a shrinking supply of area condominium units and a resurgent downtown environment will lead to substantially accelerated sales at Everglades on the Bay," said Rockwood Managing Director and Fund Manager Tyson Skillings. "We look forward to reintroducing this landmark development."
Everglades on the Bay comprises two 49-story towers located on Biscayne Boulevard in downtown Miami's burgeoning arts and entertainment district. Featuring magnificent views of Biscayne Bay and the city skyline, Everglades is directly across from Bayside Marketplace and a short walk from downtown office buildings, Museum Park, American Airlines Arena, Adrienne Arsht Center for the Performing Arts and area colleges and universities. The property includes 100,000 square feet of amenities highlighted by an eighth floor deck with three tropical swimming pools, lap pool and a four-story health club with a state-of-the-art fitness center, spa, theater, business center, private residence lounge with billiard room and multi-functional party room for entertaining. The property also has valet and 24-hour security. Prices range from the low $200,000s to million-dollar plus penthouses.
"Everglades on the Bay is ideally situated in the heart of one of the world's most vibrant cities," said Tom Duncan, President of Duncan Hillsley Capital. "Its competitive pricing and diversity of product will allow us to capitalize on the resurgent condominium market."
Duncan Hillsley Capital is a boutique real estate investment bank focused on opportunities arising from the dislocation of the credit markets and abrupt valuation changes recently experienced by all segments of the real estate market. Since its inception in 2009, Duncan Hillsley Capital has acquired, restructured, or recapitalized more than $575 million in real estate assets across all property types.
Based in Coral Gables, Fla., Fortune Capital Management Services has been involved in more than 40 real estate developments across the Southeast and completed more than $1 billion in transactions. The company specializes in asset management and equity investment for all types of multi-family residential real estate, including condominium, condo-hotel and condo conversion. Fortune Capital, which was founded in 1998, has recently concentrated on real estate investments and opportunities arising from challenging credit market conditions.
Rockwood Capital, LLC is a real estate investment firm which provides debt and equity capital combined with real estate expertise to select value-add office, residential, retail, hotel, and data center opportunities in key markets throughout the United States. Since 1980, Rockwood and its principals have invested on behalf of their investors over $4.5 billion of equity in over $10.3 billion of real estate through commingled funds, various special purpose partnerships, and separate accounts. Rockwood currently manages a portfolio of approximately $2.9 billion of equity invested in approximately $4.6 billion of real estate. Rockwood's investors include public and private pension funds, endowments, foundations, insurance companies, institutions and high net worth individuals.