Category Five Expands Miami-Dade Footprint with Strategic $47M Multifamily Acquisition

Miami-Dade Multifamily Market Sees Major Investment as Category Five Secures Lakefront Properties

Aventura-based Category Five Real Estate has significantly bolstered its South Florida holdings by acquiring two garden-style apartment complexes in northwest Miami-Dade County for a combined $47 million. This strategic investment adds 196 units to the firm's expanding portfolio of value-add multifamily properties.

Led by brothers Leon and Mike Peisach, Category Five purchased Blue Lake Apartments for $18 million and Lake Shore Presidential Apartments for $29 million in separate transactions. Both properties sit on picturesque lakefront locations in unincorporated Miami-Dade, strategically positioned between Miami Shores and North Miami.

"These acquisitions align perfectly with our investment strategy," Leon Peisach explained in an exclusive interview. "We specialize in Class C multifamily projects where we can implement our proven value-add approach to enhance resident experience while generating stronger returns."

Value-Add Strategy Drives Category Five's Investment Approach

Category Five's business model centers on identifying underperforming properties with solid structural foundations and transformation potential. Their renovation strategy typically includes:

• Comprehensive roof replacements

• Interior unit upgrades featuring modern vinyl flooring

• Installation of granite countertops and stainless steel appliances

• Enhanced security systems with comprehensive camera coverage

• Strategic amenity additions such as children's playgrounds

This methodical renovation approach allows Category Five to command approximately 10% higher rents post-improvement, elevating the average monthly rent from the current $1,800 benchmark. The firm balances property enhancements with maintaining affordability in a market where housing costs continue to challenge many residents.

"The bones of these buildings are exceptional," Peisach noted. "We're essentially working with well-constructed concrete structures situated on beautiful lakes, which creates inherent value and resident appeal."

Property Details Reveal Strategic Acquisition Parameters

The Blue Lake Apartments transaction involved an off-market deal where Category Five assumed an existing loan. The complex comprises four single-story buildings with 108 units constructed in 1991, situated on a spacious 6.4-acre parcel. At $166,666 per unit, the acquisition represents a strategic entry point for the planned improvements.

The previous owner, an entity managed by Aventura-based investor Leon Ojalvo, had secured an $11.8 million loan from Bank Leumi when purchasing the property for $15 million in 2021.

Lake Shore Presidential Apartments, brokered by a Berkadia team led by Yoav Yuhjtman, features four three-story buildings containing 180 units built in 1966. At $163,000 per unit, this property offers Category Five substantial value-add potential despite being the older of the two complexes. The seller, managed by Jacob Shakibpanah and FIP Realty Services, had owned the property since 2006 when it was acquired for $9.8 million.

Portfolio Expansion Reflects Bullish Stance on South Florida Multifamily

Since its establishment in 2021, Category Five has demonstrated remarkable growth, particularly accelerating its acquisition pace in late 2023. The firm's portfolio now encompasses 600 units across multiple South Florida submarkets, including:

• Deerfield Beach

• Pompano Beach

• Lauderhill

• Miami's emerging Little River neighborhood

• Northwest Miami-Dade County

This geographic diversification strategy positions Category Five to capitalize on varying growth patterns across South Florida's residential corridors while maintaining its focused value-add investment thesis.

"The assets we recently closed on are situated in an exceptionally promising area," Peisach emphasized. "The combination of solid construction, lakefront settings, and strategic location creates compelling investment fundamentals."

Market Insights: South Florida Multifamily Investment Landscape

How is Category Five positioning itself in the competitive South Florida multifamily market?

Category Five has identified a specific niche by focusing exclusively on Class C properties with value-add potential, deliberately avoiding the oversaturated luxury apartment sector. This strategy allows them to acquire properties at favorable price points while still benefiting from South Florida's robust rental demand and population growth.

What distinguishes Category Five's renovation approach from other multifamily investors?

Unlike investors pursuing comprehensive property overhauls, Category Five implements what Leon Peisach describes as "light to medium value-add" improvements. This measured approach balances quality enhancements with cost efficiency, allowing for quicker turnarounds and minimizing rental disruption during renovations.

How does the lakefront location factor into Category Five's investment decision?

Waterfront settings provide permanent value enhancement that cannot be replicated. Category Five recognizes that properties offering water views typically command premium rents and experience lower vacancy rates compared to similar non-waterfront properties, providing built-in investment protection.

What does Category Five's rapid portfolio expansion indicate about the South Florida multifamily market?

The firm's accelerated acquisition pace suggests continued confidence in South Florida's multifamily fundamentals despite rising interest rates and construction costs. Their focus on existing properties rather than new development reflects a pragmatic approach to the current economic climate while still capturing market growth.

How might Category Five's investment approach evolve as their portfolio grows?

As Category Five approaches the 1,000-unit threshold, they may begin exploring operational efficiencies through geographical clustering of properties or potentially expanding into adjacent asset classes that complement their multifamily holdings. The firm's demonstrated ability to identify value-add opportunities suggests they will continue finding overlooked properties with enhancement potential.