LeFrak Acquires Fort Lauderdale Riverfront Tower for $180M
The New York-based LeFrak Organization purchased a 36-story, 337-unit apartment building in downtown Fort Lauderdale from Related Group for $534,000 per unit. The acquisition reflects continued investor confidence in South Florida's rental market despite oversupply challenges.
The LeFrak Organization has expanded its South Florida footprint with a $180 million acquisition of a newly completed apartment tower in downtown Fort Lauderdale, marking another significant investment by the New York-based family-owned firm in the region's multifamily market.
Related Group and Rabina Properties sold the 36-story Harbour at New River Apartments to LeFrak for approximately $534,000 per unit. The 337-unit building at 401 Southwest First Avenue sits on 1.4 acres along the New River and was completed in 2024.
Northwestern Mutual provided $100 million in financing for the transaction, with the loan carrying a 2036 maturity date. The property features a mix of studios and one-bedroom to three-bedroom apartments, with monthly rents ranging from $3,000 to $6,000 for available units.
Currently, the building is offering one month of free rent as an incentive to attract tenants, reflecting broader market conditions in South Florida where apartment oversupply has prompted concessions across the region.
This acquisition represents the latest in a series of riverfront dispositions by Related Group in the Fort Lauderdale area. The Coconut Grove-based developer previously sold two adjacent buildings on Southwest First Avenue in 2021, including a 26-story, 249-unit tower for $85 million and a 230-unit property for $115 million.
LeFrak, led by Richard LeFrak and his sons Jamie and Harrison, has been steadily building its South Florida presence. The family's most prominent local investment is the SoLé Mia mixed-use development in North Miami, a 184-acre master-planned community being developed in partnership with Turnberry. When complete, SoLé Mia will encompass 1.5 million square feet of commercial space and approximately 4,000 residential units.
The company is also collaborating with Related Group and 13th Floor Investments on a mixed-use project near Miami's Douglas Road Metrorail Station, which would include more than 740 apartments across two buildings with ground-floor retail.
South Florida's apartment market has faced headwinds from substantial new supply delivery. A record 18,600 units were completed in 2024, exceeding total leasing by 20 percent, according to CoStar Group data. An additional 12,718 apartments were finished last year, still outpacing net absorption by roughly 300 units.
Despite the oversupply situation, transaction activity continues in the region's multifamily sector. Recent deals include Griffis Residential's $78.5 million purchase of a 263-unit West Palm Beach complex and Dermot Company's acquisition of a 340-unit Palm Beach Gardens property for $131.8 million.
Industry professionals maintain that demand for South Florida rentals will persist, driven by interstate migration patterns and the region's business-friendly environment. However, average rents have declined 2.2 percent year-over-year to approximately $2,200 across South Florida, according to Realtor.com data from March.
