Private credit firm Favo Capital has acquired a 277-unit apartment tower in Hollywood, Florida, for $190 million. The property, known as 1818 Park, is a 22-story building with ground-floor retail located at 1818 Hollywood Boulevard and faces Young Circle.
According to a news release from Favo Capital, the purchase was structured as an all-stock and assumption of liabilities deal. The seller, GCF Development—led by Charles “Chip” Abele—received a long-term equity stake in Favo as part of the transaction.
GCF completed construction of 1818 Park in 2022 following delays related to litigation, the Great Recession, and permitting issues. Public records indicate that an entity managed by Abele first purchased the site for $3.5 million in 2009 and later sold it to another Abele-led entity in 2022 for $65.6 million.
The apartment tower offers studios, one-bedroom, and two-bedroom units with monthly rents ranging from $1,640 to $3,738.
Favo Capital is based in Lauderhill and led by Vincent Napolitano. The company provides alternative revenue-based funding to small and medium-sized businesses nationwide.
South Florida’s multifamily market has slowed compared to recent years when it experienced significant growth due to high demand from new residents moving into the region. In the past two years, higher interest rates and inflation have reduced investment activity while rents have decreased slightly because of increased housing supply.
Recent notable transactions in South Florida include Spanish billionaire Amancio Ortega’s $165 million purchase of the Veneto Las Olas apartment tower in downtown Fort Lauderdale (https://therealdeal.com/miami/2024/06/19/spanish-billionaire-amancio-ortega-buys-fort-lauderdale-apartment-tower-for-165m/) and Olympus Property’s acquisition of a nine-story complex for $45.9 million in Miami’s Allapattah neighborhood (https://therealdeal.com/miami/2024/08/02/north-texas-firm-buys-allapattah-apartments-for-46m-as-market-cools/). Category Five Real Estate also bought a portfolio totaling 184 units across Sunrise for $32.3 million (https://therealdeal.com/miami/2024/07/30/category-five-real-estate-buys-sunrise-multifamily-portfolio-for-32m/) this month.
“Favo bought the 22-story 1818 Park apartment building with ground-floor retail at 1818 Hollywood Boulevard in an all-stock and assumption of liabilities deal,” according to a Favo news release. “Seller GCF Development, a Hollywood-based firm led by Charles ‘Chip’ Abele, obtained a long-term equity stake in Favo as part of the deal.”
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