TerraCap Acquires South Florida Community for $70M
- Jun 03, 2021
TerraCap Management LLC has acquired a newly built apartment community that’s fully occupied in Bonita Springs, Fla. The firm purchased Versol Apartments from Milhaus for $70.4 million.
TerraCap also retained Milhaus, who built the community in 2020, as the community’s property manager.
JBM’s Jamie May represented Milhaus in the sale, while TerraCap was represented in-house, Steve Good, national director of acquisitions at TerraCap, told Multi-Housing News.
The 240-unit Versol Apartments includes studio, one-, two- and three-bedroom floorplans that average nearly 1,100 square feet. The 100 percent-leased community also has a clubhouse, pool, outdoor kitchen, fire pit, fitness center, bocce court, dog park, package receiving and dry cleaning drop off.
Located at 28790 Versol Drive, the community is situated within the Bonita Springs market that has seen a more than 35 percent increase in population since 2010, according to TerraCap. Good said in prepared remarks that Versol’s location offered unmatched access to the nearby Barefoot Beach, high-end retail shopping and the I-75.
Good told MHN that the Versol acquisition was an opportunity to add a community near TerraCap’s main office in Naples, Fla., in an area that rarely has a project of that size. Good also told MHN that the Bonita Springs area has seen a lot of positive momentum with its market fundamentals in the last decade due to more people moving into the city. TerraCap also sold a three-property portfolio of apartment communities in Greensboro, N.C., in November.
While TerraCap normally acquires communities that were built in the 80s, 90s or 2000s, the firm saw the potential for long-term increased value with Versol Apartments, Good told MHN. According to Good, a lot of the earlier leases at the community offered concessions and others were signed during the COVID-19 downturn. When leases are renewed at Versol, TerraCap is expecting higher returns, Good told MHN.