Covenant Capital Pays $25M for Daytona Beach Value-Add Community
- Feb 03, 2020
After recently acquiring a 360-unit community in Jacksonville, Covenant Capital made another Florida purchase. The private equity firm paid $25.1 million for a a 275-unit value-add community in Daytona Beach, Fla. Covenant Capital Group purchased Ridgecrest Park from Eastern Property Real Estate Group, which owned the asset for 45 years. According to Yardi Matrix data, the buyer financed the acquisition with a $17.8 million Freddie Mac loan from CBRE Capital Markets, due to mature in 2025. Cushman & Wakefield represented the seller in the deal.
Situated on more than 44 acres at 1400 S. Nova Road, Ridgecrest Park is adjacent to Carlton Shores Health & Rehabilitation Center and across the road from Daytona Promenade. The property is close to U.S. highways 1 and 92, with Daytona Beach International Airport roughly 4 miles northwest. The community consists of 87 single-story buildings, with one- and two-bedroom units averaging 888 square feet. Amenities include a swimming pool, barbecue/picnic area, fitness center, dog park and clubhouse.
Completed in 1967, the community underwent frequent renovations, the most recent ones focusing on unit improvements. The Class C property was 97 percent occupied at the time of sale. According to Cushman & Wakefield Executive Managing Director Nick Meoli, the new ownership intends to continue upgrading Ridgecrest Park in order to reposition it and increase rents. Meoli negotiated the sale on behalf of Eastern Property, together with Cushman & Wakefield Executive Managing Director Mike Donaldson.