Market Report

McKinley announced the closing of a $14,160,000 Bridge Loan with the Bank of America for RIVA Apartments, a 278-unit community located in southwest Orlando. The property enjoys a superb location just a few blocks from Universal Studios Orlando and Mall at Millenia. McKinley recently completed a major renovation of this community that it originally acquired as a fractured condominium and it has now fully stabilized the asset as a rental apartment community.

"We truly value our relationship with Bank of America," said Albert M. Berriz, CEO of McKinley. "They have been a tremendous partner for us in our acquisition and bridge financing efforts." McKinley is in the process of securing long term HUD financing through Berkadia Commercial Mortgage and that financing is expected to close later this year.

McKinley is actively involved in managing rental communities and condominiums throughout the State of Florida on its own behalf and for select clients. Florida is McKinley's largest concentration of multifamily management with over 10,000 units under management throughout the state. McKinley has been actively involved in the investment and management of multifamily and commercial assets in Florida since 1982.

Cole Whitaker, partner who heads Hendricks & Partners in the southeast, said the new firm is now called Hendricks-Berkadia. "The acquisition brings substantial new resources to our work negotiating acquisitions and sales of investment-grade multifamily properties," Whitaker said. In 2012, Whitaker and Associate Partner Hal Warren sold some 2,400 units and negotiated 525 acres in land transactions.

"Berkadia Commercial Mortgage unites two of the great financial powerhouses, and Hendricks-Berkadia is now able to provide sound access to financing for major acquisitions," Whitaker said. Whitaker, one of the Central Florida region’s most prolific brokers of multifamily properties, joined Hendricks & Partners three and a half years ago.

Michael Donaldson, a senior associate and multifamily specialist in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the seller, a limited liability company and also represented the buyer.

Robinswood Apartments is located at 800 North Hastings Street. Built in 1966 and 1969, the property consists of a two-story apartment building with 25 units and four duplexes. Robinswood has a mix of a one-bedroom/one-bath unit, 24 two-bedroom/one-bath units and eight three-bedroom/two-bath duplexes. There is also an on-site office with a swimming pool and washer/dryer connections in the three-bedroom units. Units feature tiled floors, electric kitchen appliances, ceiling fans and single hung aluminium windows.

"The Robinswood Apartments was a classic value add sale that was unique because it included a 25-unit building and four duplexes, which were separately parceled," says Donaldson. "A seasoned foreign private investor purchased the property intending to stabilize the occupancy level and further capitalize on the desirable location just off West Colonial Drive and situated next to a recently renovated YMCA," adds Donaldson.

Michael Donaldson, a senior associate in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the Florida-based seller and buyer, both limited liability companies.

Julian Villas was built in 1984 and is located at 1103 Bentley Road. The property has a unit mix of one-, two- and three-bedroom units and is situated on 4.19 acres tangent to US-441, Leesburg’s main thoroughfare.

"Julian Villas received a large amount of interest from the investment community due to the 1980s construction, desirable unit mix and the fact that it was being offered well below replacement cost," said Donaldson.

"Even with the high number of offers generated, getting a buyer to the closing table proved to be a challenge due to the fact that there were two mortgage holders involved, both of whom were required to approve the short sale. Ultimately, we ended up closing with a very patient non-profit buyer with intentions of performing an extensive capital infusion upon takeover, that would provide future residents with a truly desirable place to call home," concluded Donaldson.

McKinley is pleased to announce it has been appointed as the property manager and asset manager of Caribbean Isle Apartments, a 376-unit resort-style apartment community, which includes one- and two-bedroom garden homes and lofts, and is surrounded by lakes and the Mallard Landing Golf Course in beautiful Melbourne.

"We appreciate the opportunity to manage Caribbean Isle on behalf of our valued client," stated Albert M. Berriz, Chief Executive Officer of McKinley. "We have actively owned and managed assets throughout Florida for more than three decades."

"We will apply our expertise in managing this asset and are excited to continue our extensive track record of success creating value for all stakeholders," shared Berriz.

McKinley is actively involved in managing rental communities and condominiums throughout the State of Florida on its own behalf and for select clients. Florida is McKinley's largest concentration of multifamily management with more than 10,000 units under management throughout the state. McKinley has been actively involved in the investment and management of multifamily and commercial assets in Florida since 1982.

Blue Rock Partners, LLC, in partnership with Konover South, LLC, continues to boost its multifamily holdings with the acquisition of a three-community portfolio consisting of 1,218 units in Florida for $66 million.

The latest purchases are the 712-unit Plantation Key Apartments and the adjacent 270-unit Providence Park Apartments, both located in Brandon. The communities, which are being rebranded as Park at Siena, are about a half-mile from the Westfield Brandon Shopping Mall. The partners also bought the 236-unit Martin’s Landing Apartments at 3520 Cleveland Heights Blvd. in Lakeland, which will be renamed Park at Verona.

Ferreira said Blue Rock is building its portfolio through strategic acquisitions of value-added, stabilized apartment properties. He said he expects additional acquisitions in the near future but did not elaborate on where or when the purchases would occur.

"Blue Rock’s accelerated investments in the Tampa Bay and Orlando markets underscore our confidence in the region," Ferreira said. "It also advances our mission to own, operate, manage and lease apartment communities with an obsession for excellence."

Based in Tampa, Blue Rock now owns more than 6,000 multifamily units in Florida. Blue Rock began aggressively purchasing multifamily assets in 2009, when Konover South, an affiliate of the Simon Konover Co. of West Hartford, Conn., acquired a strategic stake in Blue Rock. The partnership soon acquired the 390-unit Park at Dorchester and 204-unit Park at Knightsbridge, both in Brandon.

Marcus & Millichap Real Estate Investment Services has announced the sale of Hampton Bay Apartments, a 21-unit multifamily community located in St. Petersburg, according to Richard D. Matricaria, Regional Manager of the firm’s Tampa office. The asset commanded a sales price of $675,000.

Michael P. Regan and Francesco P. Carriera, vice president investments, and Nicholas Meoli, investment specialist in Marcus & Millichap’s Tampa office, represented both the seller and the buyer, private investors based in Florida.

Hampton Bay Apartments is a three-story building, constructed in 1974 and located at 111 Southwest Madison Circle North. The unit mix consists of nine efficiency units with 365 rentable square feet, nine one-bedroom/one-bathroom units with 550 rentable square feet, and three two-bedroom/one-bathroom units with 850 rentable square feet. Renovation of the property includes new paint on the exterior and hallways of the building, new tile floors in 20 of the 21 units, and 15 units have received all new white kitchen cabinets. The parking lot has also been resurfaced.

"This sale was an all-cash transaction with a three day contingency period," says Meoli. "The property closed within thirty days from the executed contract."

Marcus & Millichap Real Estate Investment Services has announced the sale of Villa Serena Apartments, a nine-unit garden-apartment community located in St. Petersburg, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset commanded a sales price of $620,000.

Casey Babb, a CCIM and senior multifamily specialist, and Luis Baez, associate, both in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the Tampa-based seller, a limited liability company. Babb and Baez also secured the buyer of the property, Weller Residential, a private multifamily investment firm located in St. Petersburg.

Villa Serena Apartments was built in 1924 and is located at 336 Eighth Avenue Northeast. The property consists of nine apartment units housed in a single-three-story, masonry-constructed building with a flat, built-up wood truss roof system. There is a mix of one efficiency unit and eight one-bedroom/one-bathroom units featuring renovated kitchens and bathrooms, hardwood floors, ceiling fans, window air conditioners and large, oversized closets.

The location off Beach Drive in St. Petersburg is irreplaceable and the surrounding ‘Old Northeast’ submarket is widely considered to be one of the strongest rental markets in the entire Tampa Bay area.

"Had it not been for some difficulty in overcoming fire code violations, we would have closed this transaction back in August or September, but the fact that the buyer remained in place during the process is a testament to what we’re seeing in the broader marketplace for well-located multifamily properties with management upside," says Babb.

"Currently, these assets can be financed with very favorable rates and terms. Rental demand is very strong and will continue to be so and investment yields are outperforming other equity investment alternatives, such as stocks and bonds. The buyer for Villa Serena is planning a major renovation, most of which was financed by the lender and will reposition the building into a trophy type of property in an already phenomenal location."

The Boca Raton office of Atlanta-headquartered ARA announced the sale of Emerald Palms, a 505-unit luxury garden apartment community located in southern Miami-Dade County. ARA South Florida-based Senior Vice President Hampton Beebe, along with Principals Avery Klann and Richard Donnellan, represented Cleveland, Ohio-based Forest City Residential Group. Denver, Color.-based Grand Peaks purchased the property for $70,500,000.

"Emerald Palms was built in multiple phases between 1985 and 2004 and has been owned for nearly 20 years by Forest City," noted Donnellan. "As a result, the property has maintained stabilized long-term occupancy and premium rental rates."

Phase I at Emerald Palms includes 103 townhome units built in 1985 and 316 garden-style units constructed in 1988. Phase II includes 86 apartment and townhome units constructed in 2004.

"Grand Peaks plans to continue to improve Emerald Palms’ position in the market through their management expertise," noted Beebe, lead broker on the deal. "Many upgrades have already been implemented by the former owner which enabled them to achieve rent premiums."