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Panhandle

The two firms formed their partnership out of their shared vision for the student-housing sector, according to Judd Bobilin, CEO of Chance Partners. "Students in Tallahassee will be the first to experience a truly walkable, world-class community that will be noted for its creativity, quality and impact on the revitalization of the Southgate District," Bobilin added.

The Community Redevelopment Agency will make a significant contribution to the project that will strengthen the desirability to live, work and shop in the district. "Catalyst, in conjunction with our efforts at the College Town project, will create the vibrant urban environment envisioned by our Gaines Street Project for this area," said Michael Parker, Executive Director, Community Redevelopment Agency of the city of Tallahassee.

Catalyst will feature 402 beds with a mix of unit types from one bedroom up to four bedroom units.

Community & Southern Bank is providing the construction financing and Hathaway Construction is the project general contractor for the project. Catalyst will be managed by Asset Campus Housing, Inc. and more information can be found at www.catalystfsu.com.

Northeast Florida

Denver-based UDR sold five Jacksonville properties to New York-based DRA Advisors for $297.75 million in an 11-property portfolio sale across the U.S.

The Jacksonville properties included:

*The Antlers, 400 units

*The Kensley, 300 units

*Green Tree Place, 352 units

                   *St. Johns Plantation, 400 units

                   *Westland Park, 404 units

ARA Florida-based Principals Marc deBaptiste and Kevin Judd, along with Vice President Matt Wilcox, ARA Dallas, Texas-based Principals Brian O’Boyle and Brian Murphy, together with ARA Washington D.C.-based Principals Drew White, Mike Marshall, and Ryan Ogden represented UDR in the transaction. The acquisition will add to the more than $9 billion in assets that DRA currently has under management. 

Horizon Realty Management, Inc. was awarded the property management contract for Cambridge Park Apartments, formerly Adobe House, in Jacksonville. The 52-unit community offers quality interior finishes with all units providing one and two bedroom floor plans. 

Central Florida

New York-based Och-Ziff Capital Management Group LLC, a global hedge fund and alternative asset management firm, has teamed with Atlanta-based Cocke Finkelstein Inc., a national real estate and investment management company, to buy three Volusia County apartment communities for $31 million ($56,363 per unit).

The two companies acquired The Groves and Pierpoint Apts. in Port Orange and the Mallards of Brandywine in unincorporated Volusia County, just north of DeLand. The three communities have a combined total of 550 units. The 172-unit Groves was built in 1989. The 210-unit Pierpoint was built in 1985. The 168-unit Mallards of Brandywine was also built in 1985. UDR made significant renovations to the three communities in 2006 and 2007.

UDR wanted to focus on their primary markets and new products," said Hal Warren, a partner in the Orlando office of Hendricks & Partners, which represented the seller.

Birmingham, Ala.-based REIT Colonial Properties Trust will spend an estimated $74.3 million-$77.2 million to add nearly 600 new apartments in Central Florida in the coming year. The company, which owns and operates six Orlando-area apartment communities, plans to build a seventh Class A apartment community in southeast Orlando. It’s also seeking approvals to add a third phase to one of its existing communities in Lake Mary.

Colonial Properties began site work in July on Colonial Grand at Randal Park, a 462-unit luxury apartment community on Innovation Way, an estimated $57.8 million-$60 million project.

Equity Residential sold the 252-unit Lexington Park Apartments on Westgate Drive in Orlando for $15.9 million, or $63,095. Cole Whitaker, Hal Warren and Jason Stanton of Hendricks & Partners negotiated the sale representing the seller.  The buyer was not disclosed. Built in 1988, the three-story garden style apartments total 210,812 square feet of rentable living space with one and two bedroom units and an average monthly rent of $716.

The same Hendricks & Partners trio negotiated the sale by Blue Valley Apartments, Inc. of the Silver Terrace I and Silver Terrace II Apartments, located in Orlando’s Pine Hills, to GlassRatner Management LLC for a total of $2.478 million. The property combined has 164 units, so the sale price equates to $15,109 per unit. The one-story garden style apartments were built in 1987.

Blue Valley also sold the 91-unit Pineview Apts. in Pine Hills to an undisclosed buyer for $1.548 million, or $17,010 per unit. The property was also built in 1987.

CBRE handled the sale of Oakwood Village Apts. in Winter Park for $12.5 million, or $44,964 per unit. Built in 1973, the community sits on Lake Nan and was 90 percent occupied at closing. Shelton Granade and Luke Wickham of CBRE’s Central Florida Multi-Housing Group exclusively represented the seller, Lincoln Property Co.

Advenir has acquired Advenir at Polos East (formerly Polos East at Waterford), a 308-unit community located in the upscale Waterford Lakes sub-market of Orlando for $27.1 million. In the past 12 months, Advenir has acquired more than 2,300 multifamily units. The property was 94 percent occupied at time of sale.

"We were attracted to Advenir at Polos East because of the significant value to replacement cost, strong market fundamentals and clear value-add potential," said Todd Linden, Chief Acquisition Officer of Advenir.

"Advenir is actively looking to acquire stabilized income producing multifamily assets in markets that have exhibited, and are projecting, healthy economies, positive employment growth and in-migration."

Advenir represented itself in the transaction. Kevin Judd, Patrick Dufour and Matt Wilcox of ARA represented the seller.

CBRE managed the sale of 600-unit Sun Lake Apts. in Lake Mary for $39,601,000, or $66,001 per unit. The buyer had to assume the existing financing and will finish stabilizing the property, which was largely vacated during a construction project on site. Shelton Granade and Luke Wickham of CBRE’s Central Florida Multi-Housing Group exclusively represented the seller. Sun Lake was built in 1988.

Marcus & Millichap Real Estate Investment Services handled the sale of the 48-unit Riverbreeze Apts. in South Daytona for $1.6 million, or $33,333 per unit. Michael Donaldson of M&M sold the property on behalf of the New York-based seller, a limited liability company and the buyer, based out of California.

"Riverbreeze was a distressed community that was experiencing sub-par occupancy levels due to the recent foreclosure, yet offered tremendous upside as a result of the desirable unit mix comprised of entirely all two bedroom town homes, some of the most appealing floor plans in the sub-market", said Donaldson.

The Riverbreeze Apartments were built in 1974.

Boston-based Eastern Mortgage Capital recently closed $2.67 million in permanent financing for the 73-unit Julian Hills Apts. in Eagle Lake (Polk County). Eastern Mortgage Capital, a nationwide MAP Lender, used FHA mortgage insurance under the 223(f) program to fund the 35-year fixed rate non-recourse financing.

 "We were delighted to be able to structure 35-year fixed-rate financing for this asset, locking in today’s incredibly low rate for the next generation," commented Peter Panagako of Eastern Mortgage Capital. "The loan allowed the borrower to lower monthly debt service by almost 50 percent in this long-term investment, while also providing funds for upgrades that will enhance the property’s marketability."

DeBartolo Development sold the 379-unit Falcon Square Apartments in Orlando to Canadian investor Venterra Realty for $43 million, or $113,456 per unit. Jay Ballard, Ken Delvillar and Lindsay Pfaender of Cushman & Wakefield handled the transaction.

Bay Area

Richard Paul Beaullieu of Lafayette, La., operating under the rubric Timber Falls Tampa LLC bought the 184-unit Timberfalls Apts. from E.T. Timber Falls Inc. for $2.75 million, or $14,946 per unit. The property was last bought for $3.65 million in February 1998. Timber Falls was built in 1973. Evan Kristol and Still Hunter III of Marcus & Millichap’s Fort Lauderdale office handled the transaction.

"The community was roughly 45 percent vacant," Kristol says. "It needed some roofing work. It looked a little tired and interiors of many of the units need to be renovated. Sixty of the units need appliances, carpet and tile. Twenty of the units needed new air handlers and condensers."

Beaullieu’s companies recently purchased the 228-unit Rivertree Landing in Tampa for $5.27 million. They also own another seven nearby apartments and fractured condominium developments, including the 70-unit Armenia Village Condominiums, 72-unit North Chase Villas Apartments and 232-unit Puritan Place Apartments.

Marcus & Millichap handled the sale of the 10-unit Pelican Isle Apts. in St. Petersburg Beach, built in 1952, for $450,000. Buyer and seller were both local private investors. M&M’s Michael P. Regan, Francesco P. Carriera and Nicholas Meoli handled the transaction.

M&M sold another small property, the 50-unit Crescent Lake Apts. in St. Petersburg, for $1.825 million, or $36,500 per unit, also to two local private investors. The property was recently renovated and offers lake views to several units.

M&M handled the sale of the 63-unit Palm Breeze Apts. in Tampa for $1.275 million, or $20,238 per unit. Reagan and Perreira handled the transaction. The property was built in 1985.

Marcus & Millichap announced the sale of the NoHo Flats development site; a new 311-unit, loft-style apartment community being built on roughly 8.5 acres within the North Hyde Park district located near downtown Tampa. According to Richard D. Matricaria, Regional Manager of the firm’s Tampa office, the site commanded a sales price of $4,888,817.

Casey Babb, CCIM and Paul Bouldin, both senior associates in Marcus & Millichap’s Tampa office, acted in a transactional brokerage capacity to help facilitate the sale between the Tampa-based seller, Hyde Park Realty Group, LLC and the buyer, Atlanta-based Pollack Shores Real Estate Group.

North Hyde Park is an urban, mixed-use redevelopment of what has traditionally been an industrial neighborhood generally located along Rome Avenue just north of Kennedy Boulevard. In 2006, nearly 15 acres were assembled and entitled for 1,500,000-square feet of residential and commercial space and the NoHo Flats will become the second major apartment development within the site. The project will be built on roughly 8.5 acres encompassing three city blocks and will offer market-rate, loft-style apartments within three- and four-story buildings with surface parking and a host of community amenities.

Cushman & Wakefield sold the 204-unit Park at Kensington Apts. in Riverview. Blue Rock Partners now manages the property, built in 1990. The previous owner undertook a $1.1 million capital improvement on the property.

Southeast Florida

Archstone has started construction on a new apartment community in Royal Palm Beach, in a joint venture with FUTURA Acquisitions Group, LLC. The project, currently known as the Enclave at Wellington, will feature 268 luxury apartment homes located at the corner of Highway 441 and Anthony Groves Road.

"The Enclave at Wellington will offer the kind of living experience that working professionals in Royal Palm Beach and Wellington aspire to," said Jay Curran, Archstone’s vice president of development for Southeast Florida. "Residents will enjoy well-appointed apartments, state-of-the-art amenities and an abundance of quality-of-life enhancing green space, while also being within blocks of some of the best shopping, dining and entertainment destinations in the market."

ZOM Florida and The NRP Group recently celebrated the completion and grand opening of Monterra Apartments, a workforce housing community in Cooper City in south Broward County. The new 300-unit community began pre-leasing in February 2012 and was 100 percent leased in April.

The centerpiece of the Monterra community is a large upscale clubhouse facility, which includes a swimming pool, clubroom with computer workstations and a 24-hour fitness center. Additional project features include energy efficient appliance and lighting packages, a playground, a covered barbeque area and a dog park.

Project financing included approximately $26 million in NIBP bonds issued by the Florida Housing Finance Corporation, HOME loan funding and additional loans provided under the SHIP Loan program funded and administered by Broward County. Project equity and construction financing were provided by Bank of America. ZRS Management, LLC has been retained to provide property management services.

In addition, Hamptons PBG, a joint venture between ZOM Florida and Northwestern Mutual, has broken ground on the 224-unit The Hamptons at Palm Beach Gardens, a luxury multifamily community located in Palm Beach Gardens. Amenities will include a clubhouse, resort-style pool, fitness center, internet lounge and pet salon. Current Builders is the general contractor for the project and ZRS Management is the property management. Completion is slated for December 2013.

Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, and national multifamily developer Wood Partners announced the closing of a $26.8 million loan for the construction of Alta Mira Apartments, a new market-rate apartment community in Miami.

Love Funding Director Carolyn Whatley of the Palm Beach office secured the financing through the U.S. Department of Housing and Urban Development’s 221(d)(4) loan program. Using the program enabled Wood Partners to secure fixed, low-interest rate financing for the initial 16-month construction period and for the 40-year term of the permanent loan.

According to Dave Thompson, director for Wood Partners in Florida, this area of Miami hasn’t seen significant new multifamily development since the mid-‘90s, so Alta Mira should be well received in the marketplace. 

Wood Partners’ investor in Alta Mira is Westplan Investors, a privately held company that owns and manages 26 apartment properties with over 8,500 units and a commercial portfolio of approximately 1 million square feet. MSA Architects of Miami designed the project, which will be constructed by Current Builders and managed by Laramar Group’s South Florida division.

The Boca Raton office of Atlanta-headquartered ARA brokered the sale of 300-unit Ashley Lake Park in Boynton Beach. Boston, Mass.-based Robbins Property Associates bought the property for $27.1 million, or $90,333 per unit. It was 90 percent occupied at time of sale.

The Boca Raton-based sales team of Hampton Beebe, Avery Klann and Marc deBaptiste represented Chicago-based Capri Capital Partners, LLC in the sale. 

ARA also handled the sale of the 296-unit Lakes at Pembroke in Pembroke Pines for $42 million. ARA’s Marc deBaptiste, Avery Klann and Hampton Beebe represented LaSalle Investment Management in the sale to Atlanta, Ga.-based Stockbridge Capital. Klann noted that since 2001, nearly $3.2 million was invested in interior upgrades, and $5.5 million was invested in exterior capital improvements such as resurfaced pools, monument signs, parking lot enhancements, landscaping improvements and upgrades to amenity areas. The property was 96 percent occupied at time of sale.

ARA and the same principals handled the sale of the 408-unit Woodbine Apts., a luxury garden apartment community located in northern Palm Beach County. Canadian-based Morguard North American Residential REIT bought the property, built in 2000 and was 95 percent occupied at the time of sale.

Rosendo Caveiro and Brad Capas of Cushman & Wakefield represented Canyon Capital Realty Advisors in the sale of more than 1.23 acres of vacant land along the Miami River. The land has an unobstructed view of downtown Miami and high-rose zoning designation.

Mayan Capital has sold the 276-unit Palo Verde Apts. in West Palm Beach for $14.75 million to an undisclosed buyer. Mayan Capital acquired the loan on the property in 2010 and took title through foreclosure in 2011. The property was built in 1973 and renovated in 2006, and was 95 percent occupied at the time of sale. Jason Shapiro and Peter Mekras of Aztec Group represented the seller exclusively in the transaction.

After an intense public battle, Palm Beach County commissioners decided that reduced-price apartments can be built west of Boynton Beach, despite concerns from neighbors about the residents the apartments could attract. Nearly 100 red-shirted development opponents crowded County Commission chambers trying to convince commissioners that 208 apartments planned along Hypoluxo Road would bring too much traffic and crime and worsen already-suffering property values.

Developers countered that Palm Beach County's struggling housing market needs more rentals. And housing advocates said including rent limits on 142 of the apartments targeted for low- to middle-income renters would help foster "workforce housing."

Palm Beach County commissioners in a 5-2 vote agreed. They stood behind the county's long-standing policy of encouraging developers to add to the inventory of homes priced for teachers, firefighters and young professionals who in the past had trouble affording local homes.

But residents of surrounding neighborhoods countered that since South Florida's real estate bubble burst, there are already plenty of lower-priced homes available. They say developers should be targeting home buyers, instead of using rentals to encourage lower-cost housing near their neighborhoods.

Ansca Homes proposes to build 414 homes total on the nearly 71 acres on the south side of Hypoluxo Road, west of Military Trail. The Toscana Isles development would include 208 single-family houses on the southern end of the property and 206 apartments in the northeast corner of the property.

Coral Gables developer Mo Abbas plans to begin building early next year with Hollywood Circle, a 25-story, 397-rental apartment project he wants to build on Young Circle. The project will include a supermarket, restaurant and a 104-room hotel. Demand for rentals is strong, with the area vacancy rate at 4.1 percent, Abbas says. The addition of tenants from the 397 apartments "will deliver to downtown the critical mass it needs," he said.

Longer term, Abbas plans a 19-story, 229-unit mixed-use project called Young Circle Commons. Abbas says the future for Hollywood is high-density buildings around the circle, with residents enjoying urban life, the ArtsPark and the amphitheater. "The location is excellent for a project," he said.

Southwest Florida

Naples investor Spiros Zorbalas bought the 161-unit Harbor East Apts. in Naples for $2.63 million, or $16,304 per unit. The transaction was done as a short sale. Built in 1975, the property was 55 percent occupied at the time of the sale, and a number of those vacant units needed significant renovations before they could be rented.

Robert and Still Hunter III and Evan Kristol of Marcus & Millichap’s Fort Lauderdale office represented the receiver and Joe Crimaldi of Crimaldi & Associates LLC represented the buyer.

A private investor in Miami under the name Citrus Grove Affordable LLC purchased the 84-unit Citrus Grove Apts. for $2.4 million, or $28,571 per unit.

The U.S. Department of Housing and Urban Development (HUD) subsidized apartment development was built in 1971. The Section 8, affordable-housing complex features seven three-story, concrete block apartment buildings on a 3.16-acre site.

Casey Babb and Luis Baez of Marcus & Millichap’s Tampa office handled the transaction.

The buyer has partnered with an operator of affordable housing properties, according to Babb. High on the new buyer’s agenda for the property is improving the living conditions and reducing crime on the property.

"HUD uses the REAC [Real Estate Assessment Center] score to measure its properties," Babb said. "Once your score falls below 70 percent, HUD starts to lean on you [to improve the property]. This property went from a REAC score of 96 percent to the 20s. If you did concentric circles looking at crime rates, it gets worse and worse until you get to this property. The central air conditioners were stolen. It had monumental problems with leaks and mold. HUD stepped in and told the owner they needed to either sell the property or they were going to pull the subsidy."

The sale took two and a half years, but during that time, the seller brought hired a management company to start some of the repairs on the property. The buyer plans to install a new HVAC system, replace a number of roofs, add security cameras and build an iron perimeter fence. The initial work has been budgeted at roughly $500,000.