Apartment community in East Naples fetches $67 million
Lisa Conley gives the scoop on what we are working on today.
Aventine at Naples(Photo: All Commercial Photography)
The sale of Aventine at Naples points to the strength of the East Naples market — and the growing demand for apartments.
The 350-unit apartment community off Collier Boulevard, between Davis Boulevard and Rattlesnake Hammock Road, recently sold for $67 million.
The sellers, Continental Realty Corp., based in Baltimore, purchased the complex for $44.25 million in 2013, when both employment and multifamily rental rates were on the rise in the Naples area.
More:Downtown Naples office tower sells for $16 million
More:Newly built Port Royal home fetched record price this year, eclipsing last year's most expensive sale
More:Local investors purchase a second building on Fifth Avenue South
More:Two commercial buildings sold for $7.2 million on Fifth Avenue in Naples
Continental made various upgrades to the complex, which included installing an outdoor kitchen, creating a fitness-on-demand studio, renovating the clubhouse and adding a 24-hour fully automated package pickup room.
The area around Aventine has seen "an absolute boom over the last 24 months, with new retail and restaurant development," making the complex even more valuable as an investment, said J.M. Schapiro, Continental's CEO.
"We bought Aventine at the right time, and the asset has been the beneficiary of a very healthy market for this product type," he said.
Aventine of Naples (Photo: Supplied by Berkadia)
Continental has other real estate holdings in Naples and Marco Island including the Sierra Grande Apartments, also off Collier Boulevard in East Naples, which it has no immediate plans to sell. "We continue to believe in that area of Naples," Schapiro said.
Other local properties owned by Continental include the Marquesa Plaza, the Colonnade on Fifth, and the Bed Bath & Beyond Plaza. The commercial real estate investment and management firm owns more than 3 million square feet of retail space and 10,000 apartments throughout the Mid-Atlantic and Southeast regions, with a portfolio valued at more than $1.5 billion.
With the apartment market so strong in East Naples, Aventine generated a lot of interest from buyers, Schapiro said.
The new owners of Aventine are Advenir, based in Aventura on Florida's east coast. The company operates multifamily rental communities throughout the United States, and its portfolio consists of 11,500 apartment units valued at more than $1.9 billion.
The complex is now known as Advenir at Aventine.
Berkadia arranged a $52.2 million loan for the acquisition, with a seven-year term, through lender Freddie Mac.
Charles Foschini, a senior managing director of Florida operations for Berkadia, said the property qualified for Freddie Mac's "green rewards" program, which offers favorable financing terms for energy-saving retrofits.
"The improvements the borrower intends to make both aesthetically and environmentally to the asset will result in an exceptional investment for the borrower and an improved living experience for the residents," he said.
Aventine, at 9300 Marino Circle, was built in 2002. It includes one-, two- and three-bedroom apartments.
The apartment complex's occupancy is at 92 percent, with monthly rents ranging from $1,146 to $1,595 a month.
"We have spent a lot of time in Southwest Florida looking for properties, and this is the first that we've been able to secure," said Todd Linden, Advenir's chief investment officer.
There are plans to upgrade about 55 percent of units that still need improvements, to make more updates to the exterior and to further improve amenities while increasing the efficiency of water use, he said.
Rents are expected to rise slightly as a result of the improvements, to be more in line with market rates.
Advenir will continue to look for investment opportunities in the region based on the strength of its economy and lifestyle offerings, but the firm has no other deals in the works, Linden said.
"We believe the market is really strong," he said. "It's going to continue to perform well."
Comments
Post a Comment