Expanding in Florida

Why PAC turned to Florida for its latest multifamily acquisition.

Sarasota, Fla.—Preferred Apartment Communities Inc. (PAC) has finalized its acquisition of the Venue at Lakewood Ranch in Sarasota, Fla. The company paid about $47.4 million for the 237-unit multifamily property, which was completed last year by the Atlanta-based Davis Development Group.

Common amenities include a saltwater pool with Wi-Fi sundeck, car center and a 24-hour athletic club with yoga and spin room, cardio theater and free weights. A “resident retreat” includes a pool table and gaming stations, and the property has a business center as well. Rents at the gated development range from about $1,000 to $3,000 a month.

According to the company president and COO Leonard A. Silverstein, the deal represents an expansion into Florida, between Tampa and Naples. Atlanta-based PAC already owns Crosstown Walk in Tampa and Aster at Lely Resort, a property in the Naples area.

PAC has likewise been an aggressive investor in other major markets recently. At the beginning of 2015, for example, it bought the 280-unit Avenues at Northpointe and the 240-unit Avenues at Cypress, for a combined $76 million. Both are in “growing submarkets” in Houston, noted Silverstein. Altogether, PAC bought 14 properties in 2014.

The company acquired the Sarasota property using a first mortgage loan from KeyBank National Association, which it intends to assign the loan to Freddie Mac within 60 days. The first mortgage loan is about $30.8 million, with a fixed rate of 3.55 percent based on a 30-year schedule.