Forest Properties Sells Sarasota Community for $42M

The buyer is planning to undertake a thorough renovation of apartment interiors at the 267-unit property.
The Lexington
The Lexington. Image courtesy of Cushman & Wakefield

Forest Properties has sold The Lexington Apartment Homes, a 267-unit community in Sarasota, Fla. Laguna Point Properties paid $42.1 million for the Class B asset.

According to Yardi Matrix data, the buyer funded the purchase with a $32 million Freddie Mac loan originated by Newmark Knight Frank, also assuming the existing $24 million Fannie Mae financing from Capital One. Cushman & Wakefield assisted the seller in the deal.

Located at 3510 Cheshire Square, The Lexington is roughly 3 miles northeast of downtown Sarasota and within walking distance of the Publix-anchored Sarasota Commons. The property is midway between Interstate 75 and U.S. Route 301, just a few miles away from a 180-unit luxury community which traded in May in one of the highest price per unit deals in the Florida multifamily market. 

Developed in 1974, the community consists of 14 three-story buildings spread across 18.6 acres. The unit mix features one- to four-bedroom apartments ranging in size from 733 to 1,555 square feet. Common-area amenities include two swimming pools, a fitness center, a tennis court, a clubhouse and a pet park. According to Yardi Matrix data, the property was 97.4 percent occupied as of October.

Cushman & Wakefield Executive Directors Nick Meoli and Mike Donaldson represented the seller in the transaction. According to Meoli, the buyer plans to implement interior renovations at the property, which would result in an effective gross revenue increase by nearly 22 percent.