White Oak Secures $67M Financing for Luxury Apartment Development in Davie Amid Challenging Multifamily Market
Strategic Development Partnership Emerges in Davie's Growing Market
In a significant development for Broward County's multifamily sector, White Oak Development has successfully secured a $67 million construction loan for an ambitious 286-unit apartment project in Davie. This financial milestone, achieved in partnership with Los Angeles-based powerhouse Ares Management, signals continued investor confidence despite current market challenges facing South Florida's rental landscape.
The development, located at 4181 and 4233 Davie Road, will feature two four-story residential buildings complemented by a four-story parking structure offering approximately 480 spaces. The project represents a strategic investment in a submarket that continues to attract attention from developers seeking opportunities in Broward County's evolving residential corridors.
Last week marked a crucial turning point for the project when a White Oak-affiliated entity completed the $11.4 million acquisition of the 4.1-acre development site from the Davie Community Redevelopment Agency. Simultaneously, the developer finalized the construction financing through Los Angeles-based Kayne Anderson Real Estate, setting the stage for imminent groundbreaking.
Competitive Selection Process Highlights Project's Premium Value
The path to development hasn't been without complications. The property has experienced several false starts over the past three years. A previous plan known as Altis Davie, which also proposed 286 units, failed to materialize in 2023. This setback created an opportunity for Paragon Group of Florida, led by Luis Gonzalez, to express development interest.
In response, Davie officials initiated a competitive procurement process for the town-owned land. White Oak ultimately secured the winning bid by offering a purchase price $1.4 million higher than Paragon's proposal, demonstrating their commitment to the location and confidence in their development vision.
According to documentation submitted to town officials, White Oak will serve as the master developer while Ares Management provides capital partnership. This collaboration leverages White Oak's local development expertise with Ares' substantial financial resources and multifamily investment experience.
Diverse Housing Options Address Community Needs
The residential offering will feature an appealing mix of one- to three-bedroom apartments, along with distinctive two-story lofts designed to attract a diverse tenant base. What distinguishes this development from many luxury projects is its significant workforce housing component.
According to a restrictive covenant signed this month, 54 apartments will be designated for households earning no more than 120 percent of the area median income, while three additional units will be reserved for those earning no more than 80 percent of AMI. This mixed-income approach addresses growing concerns about housing affordability in South Florida while potentially qualifying the project for various incentives.
The inclusion of workforce housing elements reflects a growing recognition among developers that addressing diverse price points strengthens project viability, particularly during market fluctuations. This strategy may provide a competitive advantage as the regional rental market continues its recalibration.
Established Development Team Brings Proven Track Record
White Oak Development brings substantial credibility and experience to this venture. Founded in 2011 as CC Residential by industry veterans Armando Codina, Jim Carr, and Andrew Burnham, the firm underwent a strategic rebranding to White Oak in 2022. While Codina and Carr transitioned to advisory board positions in 2020, they maintain significant influence within the organization alongside Burnham, who serves as CEO.
Both Codina and Carr simultaneously lead CC Homes, while Codina co-leads the Coral Gables-based Codina Partners, demonstrating the deep industry connections supporting this development team.
The partnership between White Oak and Ares has already proven successful in Davie. The two firms previously collaborated on the AMLI Toscana Place apartments, a project they developed in 2013 at 5801-6151 Toscana Drive and 3300 Davie Road. That venture culminated in a profitable exit, with the partners selling the property to AMLI for $114.8 million in 2015.
Ares Management, led by CEO Michael Arougheti, has established itself as a formidable player in South Florida real estate. Recent acquisitions include the $147 million purchase of the four-building Midway Miami Park industrial complex in Miami Lakes last October and a $139.7 million acquisition of the eight-story, 284-unit Ceru apartment building in Boca Raton in May.
Beyond traditional real estate investments, Ares has diversified its regional portfolio through a $150 million preferred equity investment in David Beckham's Major League Soccer team, Inter Miami CF, further cementing their commitment to South Florida's growth.
Market Timing Challenges and Opportunities
The Davie project enters development during a period of significant recalibration in South Florida's multifamily market. The region experienced unprecedented rental growth during the pandemic-fueled migration wave of 2020-2022, prompting developers to accelerate construction pipelines.
Last year saw completion of a record 18,600 new units across South Florida, substantially outpacing the approximately 15,000 net new leases signed during the same period, according to data from CoStar Group. This imbalance between supply and demand has created downward pressure on rents in certain submarkets and increased landlord concessions to attract tenants.
However, industry analysts project this excess inventory will gradually absorb over the next 12-24 months, particularly as new construction starts have slowed significantly. This timing could potentially position White Oak's Davie project to deliver into a more favorable rental environment characterized by normalized supply-demand dynamics.
Market Insights
Why is workforce housing becoming more common in luxury developments?
Workforce housing components help developers create economically diverse communities while potentially qualifying for development incentives. In markets like South Florida where affordability concerns are growing, mixed-income approaches can differentiate projects and enhance long-term occupancy stability during market fluctuations.
How significant is the current multifamily oversupply in South Florida?
While the region experienced record completions of 18,600 units last year against approximately 15,000 net new leases, this imbalance is expected to be temporary. Decreased construction starts and continued population growth should normalize the market within 12-24 months, according to industry forecasts.
What makes Davie attractive for multifamily investment?
Davie offers strategic advantages including proximity to major employment centers, educational institutions like Nova Southeastern University, strong transportation infrastructure, and a suburban character that appeals to renters seeking alternatives to denser urban environments – all while maintaining convenient access to both Fort Lauderdale and Miami.
Are rental rates expected to decline further in South Florida?
Most analysts project rental rates will stabilize rather than decline significantly, with specific submarkets performing differently based on supply-demand dynamics. Premium locations with limited new supply should maintain stronger pricing power, while areas with concentrated development may experience continued competitive pressure through 2025.
How does the White Oak-Ares partnership leverage complementary strengths?
White Oak contributes deep local market knowledge and development expertise in South Florida, while Ares Management brings substantial capital resources and institutional investment experience. Their previous successful collaboration in Davie demonstrates the effectiveness of this complementary relationship in executing complex multifamily projects.
