Many of those Valencia renters—30 percent to 40 percent—are students, both undergrad and graduate at the University of Miami. The rest are employees at the nearby medical center and other working professionals, who pay monthly rents of anywhere from $595 for a 553-square-foot studio to $2,100 for a three-bedroom, two-bathroom unit with 1,143 square feet of space. Lane Management Co. currently oversees the property.
The Investor: Adam Fruitbine, The Tuckerman Group, Purchase, N.Y.: While Valencia was built as a market-rate property, students obviously represent an important part of the mix and the business plan. More than 15,000 students attend the nearby University of Miami, but only 4,200 live in university housing.
That was just one of several compelling reasons for The Tuckerman Group, which provided the equity capital, to invest in the project. “University of Miami continues to have an on-campus housing shortage, leaving students that are looking for newer housing with very few off-campus options in the surrounding neighborhood,” says Adam Fruitbine, vice president at Tuckerman, a Purchase, N.Y.-based real estate investment firm that represents both institutional and individual investors in public and private equity investing. Another attraction: the strong Miami market, with its population growth and pent-up demand for housing.
But the transaction wouldn’t have happened without Harris. “One of the keys to this deal was that the land seller was patient,” Fruitbine says. “Lane, with the assistance of the land seller, worked with the local municipalities to solve the design and code issues. The land was eventually purchased by Lane and Tuckerman with all approvals in place, including zoning and building permits. This is truly a rarity for South Florida.”