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Beacon Hill Property Group principal Matthew Martinez represented the buyer of two Coral Gables residential buildings with plans for renovations and higher rents.

Capri Elite Holdings LLC bought the buildings, which are adjacent to each other at 800 and 801 Capri St., for $8.6 million from New York-based Capri Street Partners LLC. The buildings have a combined 42 units, which means the deal breaks down to $204,762 per unit. The cash transaction closed Oct. 30.

The four-story buildings fronting on Southwest Eighth Street east of Granada Boulevard were constructed in 1969, Martinez said. Of the 42 units, 11 are one-bedroom, one-bathroom units; 29 are two-bedroom, two-bathroom units; and two are studios.

Martinez declined to disclose the buyer except to say it's a European investor.

Ivan Ryabushkin of Coral Gables is the manager of Capri Elite Holdings, according to state records.

The property is appealing on two fronts, according to Martinez. It's in Coral Gables, one of the most desirable cities in the state, and it's close to employment centers such as downtown Coral Gables as well as downtown Miami and the Brickell district.

“The mantra in the multifamily market is that you want to buy and own apartment buildings near employment areas. You are five minutes away from downtown Coral Gables, and you are 10 minutes away from downtown [and] Brickell,” he said.

He added this is a typical value-add property that would yield a higher net operating income.

“We felt that with a long-term strategy of renovating the units as they became vacant and upgrade those units, we anticipate in our pro forma anywhere between a 20 percent to a 30 percent increase in annual rent income per unit with about $10,000 to $15,000 investment per unit,” Martinez said.

The buyer plans to replace carpets with hardwood-looking floors, old countertops with granite and old appliances with stainless steel, Martinez said. The buyer also plans to install new lights and renovate the bathrooms.

Projected rents would increase for the studios to $1,100-$1,200 monthly, up from the current average of $950, he said. Rents would increase for the one-bedroom units to $1,350-$1,500 monthly, up from $1,157, and the two-bedroom units would run $1,700-$1,900, up from $1,438, he said.

“This is a prototypical value-add deal on a well-located, 40-plus apartment building, so we have economies of scale where by a modest investment in each of the buildings as they become vacant, making improvements to those buildings would yield higher” net operating income, Martinez said.

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Beacon Hill Property Group principal Matthew Martinez represented the buyer of two Coral Gables residential buildings with plans for renovations and higher rents.

Capri Elite Holdings LLC bought the buildings, which are adjacent to each other at 800 and 801 Capri St., for $8.6 million from New York-based Capri Street Partners LLC. The buildings have a combined 42 units, which means the deal breaks down to $204,762 per unit. The cash transaction closed Oct. 30.

The four-story buildings fronting on Southwest Eighth Street east of Granada Boulevard were constructed in 1969, Martinez said. Of the 42 units, 11 are one-bedroom, one-bathroom units; 29 are two-bedroom, two-bathroom units; and two are studios.

Martinez declined to disclose the buyer except to say it's a European investor.

Ivan Ryabushkin of Coral Gables is the manager of Capri Elite Holdings, according to state records.

The property is appealing on two fronts, according to Martinez. It's in Coral Gables, one of the most desirable cities in the state, and it's close to employment centers such as downtown Coral Gables as well as downtown Miami and the Brickell district.

“The mantra in the multifamily market is that you want to buy and own apartment buildings near employment areas. You are five minutes away from downtown Coral Gables, and you are 10 minutes away from downtown [and] Brickell,” he said.

He added this is a typical value-add property that would yield a higher net operating income.

“We felt that with a long-term strategy of renovating the units as they became vacant and upgrade those units, we anticipate in our pro forma anywhere between a 20 percent to a 30 percent increase in annual rent income per unit with about $10,000 to $15,000 investment per unit,” Martinez said.

The buyer plans to replace carpets with hardwood-looking floors, old countertops with granite and old appliances with stainless steel, Martinez said. The buyer also plans to install new lights and renovate the bathrooms.

Projected rents would increase for the studios to $1,100-$1,200 monthly, up from the current average of $950, he said. Rents would increase for the one-bedroom units to $1,350-$1,500 monthly, up from $1,157, and the two-bedroom units would run $1,700-$1,900, up from $1,438, he said.

“This is a prototypical value-add deal on a well-located, 40-plus apartment building, so we have economies of scale where by a modest investment in each of the buildings as they become vacant, making improvements to those buildings would yield higher” net operating income, Martinez said.