Fairstead Buys Florida Affordable Asset for $60M

The new owner's total investment in the Naples, Fla., senior property amounts to $85 million.
Goodlette Arms Apartments. Image courtesy of Fairstead

Fairstead has purchased Goodlette Arms Apartments, a 250-unit permanently affordable senior property in Naples, Fla., from Full Circle Communities. The new owner paid $59.5 million for the asset and is planning to spend a further $25 million on capital improvements.

Originally built in the 1970s, the asset’s affordability will be preserved for at least 40 more years, due to the current deal. According to public records, a $64 million loan stood behind the purchase and improvement plan. The debt included tax-exempt bonds purchased by Berkadia and backed by Freddie Mac, as well as low-income housing tax credits, provided by Regions Bank. The subsidies were issued by Collier County Housing Finance Authority.

Capital improvements

Goodlette Arms Apartments caters to seniors and people with disabilities. The renovation plan comprises upgrades to all apartments and community amenities, as well as an energy and sustainability program. Residential units will receive new kitchens and bathrooms, while the flooring, lighting and HVAC systems will also be replaced. The property will offer a landscaped courtyard, a reimagined community center, a fitness room, a salon a computer lab and laundry facilities. Supportive services will also be available on site.

Located at 948 Goodlette-Frank Road, Goodlette Arms is situated between Route 41 and Interstate 75, near Naples Airport. Located south of several parks and golf clubs, the 10-acre site is within a mile’s distance of a prominent retail center.

The current deal marks the buyer’s eight senior housing acquisition in South Florida during the past 12 month. Last July, the company secured refinancing for another affordable property in Boca Raton, Fla. The 101-unit Section 8 property landed a $30 million bridge loan, provided by Berkadia.