CanAm Closes Equity Investment in Fort Lauderdale Apartments

The closing brings the capital redeployed in Florida under the firm’s EB-5 mandate to $103 million.
Pacific Point Apartments. Image courtesy of www.pacificpointluxuryapartments.com.

CanAm Capital Partners, a private equity affiliate of CanAm Enterprises, has closed on a $3 million equity investment in Pacific Point Apartments, a 420-unit, Class A luxury multifamily property in Fort Lauderdale, Fla., owned by the Frankforter Group. The closing marks $103 million in closed investments required as part of CanAm’s $220 million EB-5 redeployment mandate in the state of Florida.

John Reid, director of project development at CACP, said the remaining $117 million is expected to be fully deployed within the next several months. CanAm Enterprises is a leading full-service financial firm that sponsors EB-5 immigration-linked investment funds. The $3 million in capital was originally part of a $350 million EB-5 loan provided for the construction of the Brightline high-speed rail line in South Florida. The redeployed capital will remain invested in the Pacific Point project to help reposition it and to meet program requirements for EB-5 investors impacted by immigration backlogs, Reid told Multi-Housing News.

Reid said the Frankforter Group has successfully executed value-add strategies with its multifamily properties in the past and CACP expected to realize solid risk-adjusted returns for its investors with its equity investment. He said CACP was not an equity investor in the asset when the Frankforter Group acquired the multifamily property, then known as Atlantic Cypress Creek, at 3700 Pacific Point Place in Lauderdale Lakes in November 2019. The 21-building asset is located on a 25-acre site in Broward County and situated between Florida’s Turnpike and I-95 in close proximity to both downtown Fort Lauderdale and the Pompano Beach business district. Amenities include a resort-style pool with spa, fitness center, movie theater, clubhouse and tennis court.

More CanAm Investments

CACP and its affiliates have invested capital in two multifamily development properties in Texas and a Class A rental redevelopment in Philadelphia. Other commercial real estate investments have included a hotel expansion in Philadelphia and repositioning of creative office space in Atlanta and have combined asset values exceeding $335 million as of December 2020.

CanAm Enterprises has financed more than 60 projects and raised more than $3 billion in EB-5 investments. More than $1.75 billion in EB-5 capital from more than 3,500 investors in 45 projects has been repaid by CanAm as of 2020. CanAm exclusively operates seven regional centers including in the metropolitan areas of New York and New Jersey, city of Philadelphia, Commonwealth of Pennsylvania and states of California, Hawaii, Florida and Texas.