Ultimate Equity buys Royal Oaks townhomes in Hollywood for $32M
The off-market, sub-5% cap rate trade shows how tight rental townhome supply has gotten in Broward's Emerald Hills.
Ultimate Equity Inc. paid $32 million in an all-cash 1031 exchange for Royal Oaks, a gated 69-unit townhome community in Hollywood’s Emerald Hills neighborhood, in an off-market deal Cushman & Wakefield brokered for seller Royal Oak TH LLC.
Why it matters
Rental townhome communities rarely trade in Emerald Hills, and this one moved off-market at a cap rate under 5 percent, a record price per unit for the submarket. For developers and investors underwriting Broward rental product, that spread signals just how little competing supply exists for garage-equipped, three-bedroom townhomes near this pocket of Hollywood. An all-cash 1031 buyer paying a record basis with a sub-5 cap is a bet that rents in this format keep climbing faster than new construction can answer, since the built-out infill lots around Emerald Hills leave little room for a competing project to break ground and undercut Royal Oaks on price.
For owners of similar 2000s-vintage garden and townhome rental stock across South Florida, the trade is a data point for pricing a sale: institutional and private 1031 capital is still chasing yield in tight rental submarkets even as new multifamily deliveries elsewhere in the region have softened rents.
The numbers
Royal Oaks sits on 5.13 acres at 3200 Stirling Road, built in 2009 across 13 buildings totaling 116,886 square feet. Each of the 69 units runs 1,694 square feet with 3 bedrooms, 2.5 bathrooms and a private garage, plus shared amenities that include a clubhouse, pool and picnic area. Cushman & Wakefield’s Mitash Kripalani and Virgilio Fernandez, both managing directors on the firm’s South Florida Multifamily & Land Investment Sales team, represented Royal Oak TH LLC in the sale. Fernandez said assets like Royal Oaks “practically never come to market” in Emerald Hills.
What’s next
The deal closed quickly once it reached the market, and the brokers framed it as evidence that record per-unit pricing for garden-style rental townhomes in built-out Broward submarkets is durable, not a one-off. Watch whether Ultimate Equity holds Royal Oaks as a stabilized rental asset or tests unit sales, and whether the trade pulls more Emerald Hills-area rental product to market at similarly aggressive pricing. Track Broward and the wider region at the South Florida hub.