Apartment Moves

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Panhandle

Colliers International Tampa Bay announced the $6.7 million sale of a 505-unit apartment portfolio in Tallahassee. The two-property portfolio, which includes the 277-unit Palms of Apalachee and the 228-unit Palms of Magnolia Apts., was acquired in an all-cash transaction by Aspen Square Management. John W. Stone, CCIM, and Jason T. Stanton, CCIM, W. Hayes Swann, and Huston Green of Colliers International represented the owner to facilitate the sale. Palms of Magnolia’s seller is Worthington Apartments Limited Partnership, and Palms of Apalachee’s seller is Las Palmas Apartments, L.P., each a Georgia Limited Partnership.
          The properties, which were 50 percent occupied at the time of the sale, consist of a combined 454,620± rentable square feet and were marketed as part of a larger 1,256 unit portfolio composed of eight apartment communities located in Atlanta and Tallahassee.

San Antonio, TX-based Lynd Company has purchased an $80 million portfolio of distressed student housing in Tallahassee from LNR Property LLC, a diversified real estate investment, financing and management company based in South Florida, for an undisclosed price. The Tallahassee portfolio includes nine student apartment buildings totaling 1.756 msf, 1,785 units and 4,255 beds. Two-thirds of product was built between 1999 and 2004. All of the buildings are located very close to the Florida State University campus as well as several other colleges in the area.

         The portfolio is comprised of seven distressed notes and two bank-owned properties. The company closed on the property just eight days after going to contract.

         Over the past few months, Lynd has acquired $161 million in distressed assets, including a major bulk purchase of $62 million worth of notes on 14 commercial properties back in February. With this purchase, Lynd has increased its national multifamily unit count to 36,000. It now manages 2,000 units in three Florida markets including Miami, Tampa, and Tallahassee. 

Northeast Florida

Mid-America Apartment Communities closed on the acquisition of two apartment communities: the 200-unit Atlantic Crossing in Jacksonville, and the 204-unit The Retreat at Magnolia Parke Apts. in Gainesville. The acquisitions, which total $42.8 million, were funded by borrowings under existing credit facilities and common stock issuances.

Central Florida

DeBartolo Development has begun construction on the $39 million, 360-unit Andros Isles Apts. near Daytona Beach. It is a luxury community built on 24 acres as part of a 45-acre mixed-use development at the junction of I-4 and U.S. 95.

CB Richard Ellis announced the sale of the 288-unit Sutton Place in Winter Park for $18.18 million, or $63,125 per unit. Blue Rock Partners bought Sutton Place from Capreit. Built in 1986, the property was 93% occupied at closing. Shelton Granade and Luke Wickham of CBRE Central represented the seller.

A Miami-based LLC sold the 200-unit Millennium Pointe in Orlando, built in 1975, for  $4.55 million ($22,750 per unit) to an LLC from Lafayette, LA. Evan P. Kristol, Still Hunter III, and Michael Donaldson handled the transaction. a limited liability company from Lafayette, LA.

         "The buyer will benefit from the upside through increasing rents and occupancy.  Millennium Pointe’s in-fill location has strong appeal to prospective residents due to its proximity and easy access to the largest attractions and employment centers in the surrounding area," says Hunter.

Karlin Real Estate has acquired through a friendly foreclosure Vista Verde in Orlando, following the firm’s acquisition of a non-performing note on the property in March. Built in 1990, Vista Verde features 200 bungalow style one- and two-bedroom residences.
          This is Karlin’s second multifamily investment in the highly desirable MetroWest subdivision of Orlando and its third in Central Florida. In 2010, Karlin acquired the note secured by 219 units of a 328-unit condominium project known at the Element at MetroWest. The Los Angeles-based investment firm also owns Bloomingdale Woods, a 224-unit apartment community in Valrico.

The 460-unit Berkshires at Winter Haven, completed in 1973, was sold for $12.2 million, or $26,522 per unit.  The property was 90% occupied at closing, and CBRE exclusively represented the seller.

Trade Street Capital, a real estate investing and advisory firm, broke ground on The Estates at Millenia, a 700-unit apartment community near The Mall at Millenia in Orlando, a project that has been years in the making.

         "We have initiated the construction of The Estates at Millenia, which will create approximately 600 jobs with an initial local economic impact of $51 million," said Michael Baumann, chairman of Trade Street Capital. The community will include a lap pool, courtyard with barbeque grills, state-of-the-art fitness facility and multi-story parking garage. Project funding is provided by capital from Trade Street-sponsored real estate investment funds. The project is due be completed by September 2013.

Seville Place Holdings, LTD of Orlando paid $5.5 million to acquire the 444-unit Seville Place in Orlando. This is $12,387 per unit Hal Warren of Hendricks & Partners negotiated the transaction. Bob Hold of Hold Thyssen of Winter Park acted as Receiver for Seville Place, built in 1973.

Centennial Fountains LLC, an Atlanta real-estate fund bought the 400-unit Fountains at Waterford Lakes in Orlando for $37 million, or $92,500 per unit, from Rockville, MD-based Fountains Owner LLC, an entity related to real estate acquisition and development firm Bresler & Reiner Inc. Built in 2000, this gated community is located in East Orange County, and was 90% occupied at closing. CBRE’s Shelton Granade and Luke Wickham exclusively represented the seller in the transaction

The CB Richard Ellis Central Florida Multi-Housing Group announced two more Central Florida multi-housing sales : Marina Grande and Quiet Waters. The transactions totaled more than $60 million.

         Built in 2007, Marina Grande features twin luxury high-rise residential towers on the Intracoastal Waterway in the Daytona Beach area. This 486-unit asset was built as condominiums, and the remaining 414 units were sold in bulk.

          Quiet Waters, located in Sanford was completed in 1965 and sold to a different buyer. Granade and Wickham advised the sellers on both deals.

Bay Area/Tri-City

Chicago-based Equity Residential sold the 208-unit Crosswinds Apts. in St. Petersburg for $13.1 million, or $62,981 per unit, to Nashville-based Covenant Capital.
Cole Whitaker and Hal Warren  of Orlando-based Hendricks & Partners negotiated the sale.
Crosswinds was built in 1986-87

In anticipation of their latest development, Phillips Magnolia Park, in Tampa FL, Phillips Development & Realty (PDR) has closed on 19 acres of land off Falkenburg and Progress Road. Phillips plans to build 292 units of class-A luxury apartment homes. Anticipated construction will commence in the fourth quarter of 2011. Funding was secured through private equity by an affiliate of PDR.

Aliso Viejo, CA-based Emeritus Corporation sold a two-property assisted living portfolio in Florida, totaling 82,112sf, with 190 licensed beds and 148 units, to Nelson Brothers Professional Real Estate LLC, for 8.505 million. Summerville of Venice is a 42,714sf facility with 90 licensed beds and 78 units. Summerville of New Port Richey is a 39,398sf facility with 100 licensed beds and 70 units. The portfolio sold for $8,505,000. Krone Weidler of Marcus & Millichap handled the transaction.

Marcus & Milichap also handled the sale of Sandanay and Stonehenge, contiguous apartment properties totalling 100 units located in Tampa, for $2.5 million. The properties were built in the 1960s.  Casey Babb, CCIM, and Luis Baez had the exclusive listing to market the property on behalf of the sellers, a partnership based out of Florida.

         "As far as we know, Sandanay-Stonehenge was the first non-distressed property to trade in the University Tampa submarket in over three years," Babb said.  "The seller had owned the property for over 15 years and financed 74 percent of the purchase price for the buyer, who was a foreign investment group with holdings in Europe, Canada, the Midwest and now Southwest Florida, which was instrumental in getting this deal closed."   

An affiliate of Harbor Group International, LLC has acquired the 276-unit Sienna Bay in St. Petersburg for $19.5 million ($70,652 per unit). Sienna Bay Apartments was completed in two phases in 1974 and 1985, and is currently 90% occupied.

Hendricks & Partners negotiated the sale of the 336-unit Sawgrass Cove in Bradenton. Cole Whitaker, partner at Hendricks & Partners who heads

the Southeast Division of the firm based in Orlando, negotiated the transaction with Associate Partner Hal Warren representing the seller, Chicago-based Equity Residential.
         The property, built in 1991, was 97 percent occupied at time of sale. New York-based Atlas Real Estate Partners and Florida-based Andover Real Estate Partners doing business as Sawgrass Cove Apartments, LLC acquired the property and plan to upgrade the exterior, interiors, landscaping and amenities immediately.

First Market Properties, LLC, has sold the 320-unit Canterbury Lane in Tampa to Plano, Tx-based Jasmine Investments, LLC, for  $4.1 million ($12,812 per unit). The transaction took place about three months after FMP took possession of Canterbury Lane in February by means of deed in lieu of foreclosure, having purchased the property’s distressed mortgage at a deep discount. First Market has been active in acquiring distressed debt over the last two years and primarily focuses on Florida and the Northeast.

         Canterbury Lane, built in 1973, was about 80% occupied at time of sale.

Franklin Street Real Estate Services announced the sale of Pines II and Oaks Apartments in Tampa for $416,000. The sales price represents $13,000 per unit and $15.03 per square foot.
         Kevin Kelleher, Bob Goldfinger, and Darron Kattan of Franklin Street Real Estate Svcs., represented both parties in the transaction. The property was a foreclosure sale for a national lender servicing company and was vacant at the time of sale. The seller, Pines II Apts. Holding Company, LLC, foreclosed on the property in late 2010.  The buyer was a private investor based out of Tampa and purchased the property in an all-cash transaction.
         "This sale is another glaring example of the true value added opportunities that exist in Florida’s distressed low-income housing market," said Kelleher. "This property would cost approximately $80 per foot to replace. Even with a significant rehab, the buyer will be "all-in" well below $25 per foot, which we believe to be an excellent value for 1980s vintage concrete block property in Tampa," Kelleher continues, "Furthermore, as the market stabilizes over the next few years, this investment will be well positioned to generate excellent profits for the buyer."

CB Richard Ellis arranged the sale of 366-unit, Class A Westbury at Lake Brandon in Brandon, built in 2001, for $33.1 million, or $90,437 per unit. Phoenix-based Alliance Residential Company bought the community from Westbury Owner LLC. John Selby and Jim Bobbitt of CBRE’s Multi-Housing Group in Tampa handled the transaction. CW Capital provided financing.

Tampa-area investor William Sultenfuss purchased the 100-unit, bank-owned Green Oaks Apts. in Tampa for $2.35 million in an all-cash deal.

Nashville-based Covenant Capital Group bought the 208-unit Crosswinds Apts. in St. Petersburg for $13.1 million, or $62,981 per unit.

Tampa-based Garrity Land Development Group purchased the 32-unit Hyde Park Pointe Apts. in Tampa for $1.9 million, or$59,375 per unit. John Garrity II, managing member of the group, told the Business Review that the group hopes to add another 400 units to the portfolio in the next 24 months.

Tampa-based Sage Partners LLC is building a new multifamily project in downtown Tampa, a six-story 120-unit Metro 510 development on the grounds of the historic St. Paul AME Church will be a winner.

         "We specialize in workforce and affordable senior housing and this is a very opportune time for that," said President Debra Koehler. "We also have a track record developing over 10,000 units of this type."

         Demand for workforce and senior housing, she says, is huge and there is almost none in that part of downtown near the Marion Transit Center facility. In addition, the construction slowdown allowed the project to receive extremely attractive construction pricing. She expects the project to be completed by year’s end.

Winter Park-based PAC Land Development Corp. is building the 272-unit The Lost Creek Resort Apartments in east Manatee County, the first apartment building to break ground for actual construction in the county since 2005.

Southeast Florida

Equity Residential purchased the 225-unit The Residences at Bayview, a luxury midrise community in Pompano Beach, from RAM Development for $45.118 million, or $200,524 per unit. RAM was the original developer of The Residences at Bayview in 2003. Douglas Driver in Franklin Street Financial’s Ft. Lauderdale office handled the transaction.

CB Richard Ellis arranged $24.7 million acquisition financing for the 362-unit Plantation Lakes in Sanford. Fixed-rate financing consists of a seven-year term and 30-year amortization through Met Life, New York, on behalf of Lakes Edge Apartments LLC.

         CBRE also arranged $11.941 million for the 240-unit Vintage at Plantation Bay in Jacksonville. Financed through Freddie Mac, on behalf of Momentum Real Estate Partners, Miami, the fixed-rate loan includes a seven-year term, 30-year amortization and one year of interest only at a 71 percent loan-to-value.

         Finally, CBRE  arranged $2.995 million in supplemental financing through Freddie Mac for the 280-unit Lakes of Margate in Margate on behalf of Advenir @ Margate LLC. CBRE arranged the first mortgage in 2009.

         "This loan is historic in its context as it is the first second mortgage ever originated in Freddie’s Mac’s Capital Markets Execution program," CBRE Vice President Foschini said. "Viewed as a bellwether to the health of the residential markets, the second mortgage could not have been provided without a substantial recovery in the rental markets."

Codina Partners, in association with CM Doral Development Company, announced the groundbreaking for Cordoba II on June 22. The 230-unit building will be the second phase of the luxury rental community Cordoba Downtown Doral, located at 8111 N.W. 53rd St. in Miami.

         "We’re moving forward with Cordoba II because of the success that we’ve had with the first phase of Cordoba Downtown Doral that is currently 99% occupied," says Armando Codina, chief executive officer of Codina Partners.

         Cordoba I achieved LEED Silver certification, and Cordoba II will be built to same certification level. Downtown Doral, a 120-acre master-planned community, is destined to be the heart of the city of Doral and is also home to the new $22 million Doral Government Center.

         The mixed-use development will feature thousands of residential units and more than 1 msf of commercial space and an elementary school. The community will also feature a three-acre public park, landscaped medians and a residential boulevard lined with townhouses complemented by beautiful landscaping, fountains, and shade pavilions.

Southwest Florida

RFH Advisors, a Newport Beach, CA, family-run investment firm, purchased the 136-unit Palm Vista Apts. in Fort Myers from Coral Gulf IV LLC for $2.5 million, or $18,382. Judy Dolan and Steve Hyatt of Berger Commercial Realty Corp. represented the seller.

Argentinean investors, through GIGA Apartments LLC of Miami, purchased a 104-unit River Park Apts. in Naples for $2.2 million, or $21,153 per unit, in a court-ordered short sale. In addition, Lo Exclusive LLC purchased the 94-unit Gordon River Apts in Naples, for $2.3 million, or $23,958 per unit, also under a court-appointed receiver-ordered short sale.

         Jim Garinger, CCIM, SIOR, John Stone, CCIM, and Jason Stanton, CCIM of Colliers International, facilitated the sales.