PENLER Pays $48M for Southwest Florida Community

Tradition at Palm Aire. Image courtesy of PENLER

PENLER has finalized the $48.1 million acquisition of Tradition at Palm Aire, a 248-unit community in Sarasota, Fla. NorthMarq originated a 10-year, $31.9 million Freddie Mac loan for the purchase, according to Manatee County records. 

Preston Giuliano Capital Advisors sold the property, Yardi Matrix data shows. The company acquired a 70 percent interest in the property—representing unsold condo inventory—for $13.5 million in 2012, when Tarragon Corp. sold it as part of a bankruptcy action. Subsequently, the firm purchased the remaining interest and converted the apartments into rental units.

Located on 28 acres at 8445 Gardens Circle, the community encompasses 20 two-story buildings completed in 1991. The property is 5 miles east of Sarasota-Bradenton International Airport and 7 miles northeast of the city center. Additionally, the site is a short distance from the busy retail corridor along University Parkway.

Capital improvements

The new owner will implement a $5 million renovation program which includes a remodel of the clubhouse and gym, exterior cosmetic upgrades and interior renovations for all apartments. The unit mix has one- to three-bedroom floorplans, with sizes between 641 and 1,363 square feet. Community amenities include three pools, an outdoor kitchen, a tennis court and a dog park.

NorthMarq Managing Director Luis Elorza and Senior Associate Justin Hofford assisted the seller in the deal. Managing Directors Faron Thompson and Lee Weaver facilitated the acquisition financing for the borrower.

Last year, PENLER began the construction of its first multifamily project: The Parker, a 240-unit property in Dawsonville, Ga. The company’s partners on the development are NXT Capital and Synovus Bank.