November 23, 2020
The Multifamily Firm is proud to announce the sale of the Sarasota Springs Apartments in Sarasota, Florida. The Sarasota Springs sale was an off-market transaction to an out of state investor and sold for $2,475,000, which equates to $123,750 per unit.
The sale consisted of 20 total units, in 10 masonry building, on 6 parcels totaling 1.35 acres and featured a highly favored unit mix of 100% two bedroom / two bathroom units. Additionally, most of the units had been modestly updated and were individually metered for water/sewer/electric, with tenants paying all utilities directly to utility providers.
The property was self-managed at the time of the sale and was hit hard by the effects of the lockdowns in March/April due to the COVID-19 Pandemic. At the time of sale, 7 units of the units had outstanding rent balances from non-payment and/or partial payments back in March/April, which equated to a rent collections percentage of approximately 54%. Fortunately, nearly all tenants were making regular / on-time rent payments in the months following the lockdown period and the buyer had a professional management company lined up to take over the operation, which was enough to satisfy the lenders concerns to approve financing the deal.
The transaction speaks further to the increased demand for multifamily assets in Florida; especially from out of state investors trying to enter the market. Despite all the negative effects caused by the Pandemic, investors appear to be undeterred and remain eager to look past these challenges for the opportunity to develop a multifamily portfolio in the Florida market.
The transaction was brokered by Phil Ginexi and Kyle Keelan from The Multifamily Firm.
SARASOTA SPRING APARTMENTS SALE HIGHLIGHTS:
- Sale Price: $2,475,000
- Sourced & Sold Off-Market to an Out of State Investor Eager to Establish a Multifamily Portfolio on the West Coast of Florida
- Successfully Negotiated & Navigated the Transaction to Closing During a Global Pandemic and Related Rent Collections Issues
- At the Time of Sale, 7 Units had Rent Balances from March/April During Lockdown, but Nearly All Tenants Were Making Regular On-Time Payments in the Months that Followed
- Sale Consisted of 20 Total Units, in 10 Masonry Buildings, on 6 Parcels of Land Totaling 1.35 Acres
- Highly Favored Unit Mix of 100% Two Bedroom / Two Bathroom Units with Screened-in Lanai’s in 50% of the Units
- Rare 2000-2006 Masonry Construction with All Units Modestly Updated and Washer/Dryers in Each Unit