Moderno & Gaia Bet $300M on Miami’s Single-Family Market

Key Points:

•  400 homes targeted in Miami’s urban core during the first $150M phase
•  $4K–$7K monthly rents expected post-renovation
•  $100K per home allocated for renovations; all-cash purchases enable swift closings

As Miami’s skyline continues to reach new heights with luxury condos, Moderno Development Group and Gaia Real Estate Holdings are shifting focus to the ground level. Their joint venture, MILAS (Miami Land and Single-family), is a $300 million fund aimed at revitalizing single-family homes in the city’s urban core. With the first $150 million phase underway, the partners plan to acquire and renovate approximately 400 homes, catering to the growing demand for high-quality rental properties in the area.

MILAS: A Ground-Level Investment Strategy 

• Fund Structure: The MILAS fund is structured in two phases, each comprising $150 million. The initial phase includes $50 million in equity and a $100 million credit line facilitated by JLL.
• Acquisition Focus: Targeting single-family homes and townhouses in Miami’s urban neighborhoods, the venture began purchasing properties in February 2025.
• Renovation Plans: Each property will undergo approximately $100,000 in renovations, aiming to offer monthly rents between $4,000 and $7,000.
• Operational Approach: The venture operates with two divisions—one for renovations and another for new construction—allowing flexibility based on each property’s condition.
• Strategic Advantage: By making all-cash purchases, MILAS can close deals swiftly, a significant advantage in competitive markets.

Market Dynamics: Why Single-Family Homes? 

While Miami’s condo market faces challenges due to rising construction costs and financing hurdles, the single-family home segment presents a compelling opportunity:

• Limited Supply: There’s a notable scarcity of new single-family homes in Miami’s urban core, making existing properties valuable assets.
• Buyer Preferences: Many end-users are deterred by the complexities and costs associated with renovating older homes, creating demand for move-in-ready properties.
• Investment Potential: By revitalizing existing homes, MILAS aims to meet this demand while generating stable rental income, positioning itself advantageously in the current market.

Moderno and Gaia’s $300 million investment through the MILAS fund underscores a strategic pivot towards single-family homes in Miami’s urban core. By focusing on renovating and constructing quality rental properties, they aim to address a market segment with limited supply and growing demand. This initiative not only reflects adaptability in a shifting real estate landscape but also sets a precedent for similar investment strategies in urban markets.