Ultimate Equity has acquired a residential community with 69 townhouse units in Hollywood, Florida, for USD 32 million, as announced by Cushman & Wakefield. The gated community, named Royal Oaks, located in the Emerald Hills neighbourhood, changed hands as part of a 1031 tax-deferred exchange transaction, which was settled entirely in cash. According to Cushman & Wakefield, this marks a record price per unit for this submarket and a capitalisation rate of less than 5 per cent.
The property was sold by an entity designated as Royal Oak TH, operated by Preston Giuliano Capital Partners. The sale price was approximately 36 per cent above the amount they paid for the acquisition less than twelve months prior. Records from Preston Giuliano Capital Partners indicate that the property was last sold in August 2025 for USD 23.5 million.
Details of the property and transaction
Built in 2009, Royal Oaks at 3200 Stirling Road comprises 13 buildings with a total area of 116,886 square feet on a 5.1-acre plot. Each unit features three bedrooms, 2.5 bathrooms, and 1,694 square feet of living space, complemented by a private garage. According to the Royal Oaks website, monthly rents range from USD 3,228 to USD 3,281. Community amenities include a clubhouse, a swimming pool, and a picnic area.
Brokers Virgilio Fernandez and Mitash Kripalani from Cushman & Wakefield mediated the sale. Fernandez stated in a declaration that properties like Royal Oaks in Emerald Hills practically never come onto the market. He described it as a gated for-rent townhouse community in one of Hollywood's most desirable and supply-constrained neighbourhoods. By conducting a disciplined off-market process, they managed to swiftly conclude the transaction on an all-cash 1031 basis, achieving a record price per unit for the seller with a capitalisation rate below 5 per cent.
Buyer background
Ultimate Equity, owned by David Sedaghati, who also operates the shoe manufacturer Ultimate Shoes, is an active player in the region. The company sold a development site in Miami's Wynwood neighbourhood for USD 54 million in March, highlighting the company's ongoing activities and investments in South Florida.
- —Transaction volume: USD 32 million
- —Number of units: 69 townhouses
- —Previous sale price (August 2025): USD 23.5 million
- —Capitalisation rate: Under 5 per cent
