Raia Buys a Tallahassee Apartment for $42.2M

ARA brokers a Tallahassee sale; Steel Castle buys a 296-unit apartment in San Antonio; and Centerline provides $4.5 million to refinance a community in Florida.

Boca - Victoria GrandTallahassee, Fla.—Raia Properties Corp., a New Jersey-based investor and developer, has completed its purchase of Victoria Grand, a 320-unit asset in Tallahassee, Fla. The ARA-brokered sale represented a sales price of $42.2 million.

“The market has no market-rate units slated for delivery in 2014 and beyond,” says Matt Wilcox, senior vice president at ARA. “This, combined with a 6 percent unemployment rate for the Tallahassee MSA, positions Victoria Grand for strong future performance and limited competition.”

Wilcox led ARA’s Central and North Florida sales team along with principals Kevin Judd and Patrick Dufour. Victoria Grand was built in 2008 and features large floor plans and a full suite of luxury amenities.

“Victoria Grand is a Class ‘AAA’ asset in a strong secondary Florida Market,” Wilcox adds. “Tallahassee exhibits all the base strength of major MSAs across Florida. The diverse employment base is comprised of state government, three major universities and regional medical centers serving all of Northwest Florida and Southern Georgia.”

Steel Castle buys a San Antonio community

San Antonio—Boutique investment management firm Steel Castle Capital has acquired Westover Hills, a 296-unit apartment in San Antonio’s Sevona Westover Hills area. Escrow on the recently built property closed on August 9, 2013.

“During the due diligence phase of the transaction we learned that the U.S. Department of Defense invested a great deal into the area’s technology infrastructure,” says Bob Cooney, managing principal at Steel Castle Capital. “The high-speed fiber access, in turn, attracted many large employers. In addition to the medical center and Sea World, Wells Fargo, Chase, Microsoft, Nationwide and other well-known corporations all have job centers within a short drive of the property.”

Sevona Westover Hills features a 5,000-square-foot clubhouse modeled after a 1800s Texas farmhouse, a fitness center and a swimming pool.

“Senova Westover Hills is already enjoying strong occupancy,” says Craig Reed, managing principal at Steel Castle Capital. “It’s a Class A property in a Class A suburban community, and we’re very excited to have it in the Steel Castle Property Partners portfolio.”

Centerline provides $4.5M refinance for a Florida asset

Gainesville, Fla.—Centerline Capital Group has provided a $4.5 million CMBS loan to refinance The Grove Villas, a 144-unit community in Gainesville. The property consists of 24, two-story residential buildings and a laundry facility. The CMBS loan arranged by Centerline will have a term of 10 years that will amortize over a 30-year period.

“The Grove Villas is located in the western portion of Gainesville, Fla., approximately three miles west of the University of Florida campus,” says Ian Monk, assistant vice president at Centerline. “Approximately 20 percent of the tenants are students with two-thirds being graduate students and one-third being undergraduate students.”

The borrower has owned the asset since 2006. Amenities include an outdoor tennis court, controlled access and tropical landscaping.