South Florida Multifamily Draws Record Capital as Developers Bet on Rental Demand

South Florida's multifamily sector continues to attract massive capital inflows as developers and investors position for sustained rental demand across Miami-Dade, Broward, and Palm Beach counties. More than $1 billion in financing commitments and acquisitions have closed in the region since late 2025.

Record-Breaking Deals

The headline transaction came in December when Oak Row Equities and its partner Mariposa closed a record $520 million acquisition of a waterfront site in Miami's Brickell neighborhood. The deal marked one of the largest single-asset multifamily land purchases in South Florida history.

Focus Group, a Chicago-based developer, secured $250 million in construction financing for Fox Brickell, a luxury apartment tower in Miami's central business district. PMG (Property Markets Group) has been among the most active borrowers, landing $115 million for a Fort Lauderdale waterfront tower and $93 million for a luxury project in Miami's Overtown neighborhood.

In the Palm Beach market, 13th Floor Investments and Rockpoint secured $100 million in February 2026 to build a transit-oriented rental community adjacent to a Tri-Rail station in Boca Raton — reflecting growing interest in mixed-use development near public transit nodes.

Conversions and Affordable Housing

Not all activity is focused on luxury. ZOM Living landed $92 million for an office-to-residential conversion in Doral, part of a broader trend of adaptive reuse across South Florida as older commercial buildings get repositioned for housing.

Coral Rock Development closed $54 million in financing for a fully income-restricted multifamily project in Allapattah, one of Miami's rapidly gentrifying neighborhoods. The project will add much-needed affordable units in a market where median rents have increased significantly over the past several years.

Related Companies and Related Group sold the Falls of Bonaventure multifamily complex in Weston for $51 million, while the Foundation for Affordable Housing acquired a 201-unit community in Weston for $51 million from a Roizman Development and Related Group joint venture.

Luxury Condo Pipeline Adds to Activity

The luxury condo market is also commanding attention. CMC and Fort Partners secured $324 million in construction financing for a Four Seasons-branded condominium in Coconut Grove. Bank OZK provided a $133 million construction loan for an Allen Morris Company condo project in Coral Gables, and Oko Group and Cain International committed $55 million for a Palm Beach luxury development.

Market Outlook and Fed Impact

South Florida's multifamily market faces some headwinds. Recent reports have characterized the rental market as experiencing "lethargic rents" in certain submarkets, driven partly by a wave of new supply hitting the market simultaneously. National CRE interest rates stood at 6.57% as of Q3 2025, with average cap rates at 6.34%, though South Florida properties typically trade at tighter spreads given the region's strong population growth fundamentals.

The Federal Reserve's monetary policy trajectory will be critical for 2026. If rate cuts materialize as expected, refinancing conditions should improve for the wave of construction loans originated during the low-rate era. Investment sales nationally increased nearly 20% through Q3 2025, and loan originations jumped 48% — a trend South Florida has led.

With continued migration from the Northeast and Midwest, a deep pool of international capital, and a diversifying economy, South Florida's multifamily sector remains one of the most active in the nation.