Two Fort Myers Assets Trade for $19.3 million

Marcus & Millichap sells two communities in Florida; Transwestern brokers a 210-unit sale in Colorado Springs; and Capital One Multifamily Finance closes a $19.5 million Fannie Mae loan.

BellaRosaFort Meyers, Fla.—Marcus & Millichap has brokered the sale of Bella Rose and Park Place, two apartment communities in Fort Meyers located across the street from each other that total 337 units. The combined sales price was $19.3 million, or $57,122 per unit. Michael Regan and Frank Carriera, vice presidents investments in Marcus & Millichap’s Tampa office, represented the seller and the buyer.

“The sale of these two assets speaks to the investor demand we are experiencing in southwest Florida,” says Regan. “The properties provide the new owner with the potential to add value through strategic upgrades and capital infusions.”

Park Place AptsBoth properties are located on Deleon Street in Fort Myers, Fla., less than one-tenth of a mile from Colonial Boulevard and U.S. Highway 41, which experience daily traffic counts of more than 49,000 and 57,000 vehicles per day, respectively.  Built in 1979, Bella Rosa Apartments is a 160-unit, 123,780-rentable-square-foot community that consist of 12 two-story building and a one-story clubhouse. Park Place Apartments is a 177-unit, 158,000-rentable-square foot apartment community that was built in 1973. It features 13 two-story buildings. Both properties have pools, fitness centers and playgrounds.

Transwestern sells 210-unit community in Colorado Springs

Colorado Springs, Colo.—Transwestern’s Denver office has negotiated the sale of a 210-unit property in Colorado Springs known as Point of View. The community was sold by Blue Valley Apartments Inc. to a Denver-based investment group, which was represented by Radford Investment Properties.

“We think Colorado Springs is well-positioned for the value-add investor purchasing apartment properties,” says Tom Wanberg, senior vice president at Transwestern. “Rent growth has been moderate the last few years, but we think that is changing. As we look forward to 2015, it appears it’s going to be a terrific year for apartment owners in Colorado Springs. Not only is the vacancy rate extremely low, but the city has a very narrow pipeline for new apartment construction.”

Wanberg worked with Transwestern’s John Blackshire and Stacey Brady on the sale. Point of View was built in 1985. Its seven buildings received new roofs in May 2014. Amenities include a heated swimming pool, barbecue area, playground and two laundry rooms.

Capital One Multifamily closes $19.5M Fannie Mae loan

Bethesda, Md.—Capital One Multifamily Finance announced that it has provided a $19.5 million Fannie Mae fixed loan for the acquisition of City Point, a 396-unit garden-style apartment community in Austin, Texas. Adam Bieber, vice president in Capital One Multifamily’s Bethesda, Md., office, originated the transaction.

The borrower, Firmus Equity Partners, concentrates on value-add multifamily properties primarily in the Midwest and Texas. The City Point acquisition is also its first transaction with Capital One Multifamily, as well as its first Fannie Mae loan. “We decided to explore Fannie Mae financing because the structure of the loan—and particularly the availability of interest-only payments—meshes well with our strategy as a value-added operator,” says Cary Krier, the founder of Firmus.  “Working with Capital One allowed us to exceed our expectations.”

Capital One was able to deliver the financing for the project on a tight deadline. “This transaction highlights the advantage for clients of our longstanding relationship with Fannie Mae,” Bieber says.  “It also reflects the expertise we bring to bear on all our transactions, and our commitment to close as efficiently and quickly as possible.”

Constructed in 1983, City Point is conveniently located in north-central Austin near the intersection of I-35 and Highway 290. Approximately 20 percent of the units have been recently upgraded, and the exteriors of all units have been sheathed in fiber-cement siding. The borrowers plan to continue interior renovations as units turn over.

The fixed-rate loan has a seven-year term, six and a half years of yield maintenance, and two years of interest-only payments, with a 30-year amortization thereafter payable on an actual/360 basis.