Ram has announced the sale of Alton Pointe, a 118-unit multifamily rental community in Miami Beach. A strategic purchaser based in the Miami Beach market has acquired the property.
Alton Pointe is prominently located at the northern entrance to Miami’s celebrated South Beach. Ram acquired the property by first purchasing the note on the property in December of 2008. This occurred at the depth of the real estate crash and marked Ram’s first purchase of a defaulted mortgage. Since that time the company has acquired 60 sub-performing and non-performing notes from regional banks and special servicers.
Subsequent to acquiring the Alton Pointe note, Ram secured title to the property through the Bankruptcy Court and immediately commenced a thorough rehabilitation of the residential units, located in nine historic buildings. The rehabilitation, concluded in the first quarter of this year, involved the modernizing of the interiors and the upgrading of the grounds, including the addition of green spaces and a pool and patio area. At the time of the sale, the property was 96 percent leased.
According to Ram Chairman Peter Cummings, “Our redevelopment of this landmark site is rewarding to the company and its investors, not only from the financial standpoint, but also from the community standpoint, as we resolved issues which resulted from neglect, and we restored Alton Pointe’s iconic architecture and stature in the area.
“We continue to seek opportunities to acquire debt, where our management team can add value once we have taken title,” Cummings added. “Alton Pointe is a great example of where our ability to acquire defaulted mortgages and to add value at the property level can produce great returns.”