Harbour Realty Advisors has sold a Tampa, Fla., community that averages 99 percent occupancy, for $77 million. According to Yardi Matrix data, Covenant Capital Group acquired Lakeshore Club. The seller was represented by Cushman & Wakefield’s Nick Meoli and Mike Donaldson.
The deal also included a nearly $50.2 million acquisition loan from Pinnacle Financial Partners, according to Yardi Matrix data.
Located at 6900 Concord Drive, the 638-unit apartment community offers one-, two- and three-bedroom floorplans ranging from 550 to 1,300 square feet. All of Lakeshore Club’s units include GE appliances and valet trash service while select units have washer/dryer units, and patios or balconies. The community is also situated on a 66-acre site that has a recreation deck, playground, fitness center, two pools and two tennis courts.
According to Yardi Matrix data, the community was built in 1969 and Harbour Realty Advisors became owners in July 1998 after paying nearly $16.8 million to GDC Properties.
Meoli said in prepared remarks that the community is a rare value-add opportunity that the Harbour Realty Advisors left in predominantly classic condition. Meoli also said in his prepared statement that Lakeshore Club averages 99 percent occupancy.
COVENANT’S CAPITAL IMPROVEMENT PLANS
According to Donaldson’s prepared remarks, the new owner has a track record of repositioning similar properties and has plans for an extensive renovation program for Lakeshore Club. Donaldson also said in prepared remarks that the owner is anticipating to raise rents by more than $325 per unit after completing the capital improvements.
Covenant Capital previously acquired a 275-unit value-add community in Daytona Beach, Fla., for more than $25 million. Cushman & Wakefield’s Meoli and Donaldson also represented the seller in that transaction in February 2020. Similarly, the private equity firm bought the Class C property with intentions to continue upgrades to reposition the community and increase rents. More recently, Covenant Capital purchased Brandywine Apartments, a 477-unit community in St. Petersburg, Fla., for $55 million.