NRI has sold Gables Station, a 495-unit mixed-use asset outside of Miami, to Hines. Hines Global Income Trust paid $430 million for the property, according to Commercial Observer, which first reported the deal.
The property's luxury units, which range from studios to three-bedroom apartments, operate under the Life Time Living brand, a division of athletic resort operator Life Time. Following the sale, the company will continue to operate an on-site, 80,000-square-foot resort facility as well as a 25,000-square-foot coworking space within the building. Willowick Residential, a Hines subsidiary, will take over property operations for the residential component.
The 14-story, 1.2 million-square-foot development at 225 S. Dixie Highway in Coral Gables opened its doors last year. Spanning three towers, the community's units were 95% leased at the time of the sale. The asset has a wide range of amenities — in addition to access to the branded health club — from a spa to a party room and terrace. Additionally, two restaurants and a Trader Joe's are located within the property.
Miami's Luxury Properties Perform
Hines noted that the investment decision was rooted in a desire to expand its multifamily portfolio with the inclusion of high-quality properties with strong locations in markets with high barriers to entry. And as South Florida continues to draw relocating businesses alongside population growth, the market's future appears bright.
The surge in investment in 2022 was already apparent by the end of April, with transaction volume topping last year's first four months by 25%. Most of those deals involved luxury assets. A Marcus & Millichap report highlights the lack of availability marketwide — even as many metros are seeing multifamily development pipelines dominated by a glut of luxury projects.