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Commercial Real Estate
Business Observer Friday, May 31, 2019 2 weeks ago

Millennium Apartments trades for $62 million

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Deal came together in the wake of a 99-year-ground lease.
by: Kevin McQuaid Commercial Real Estate Editor

A Los Angeles-based investment firm has acquired the newly completed Millennium Apartments in Fort Myers for $62 million, one of the largest transactions involving a multifamily rental project in Southwest Florida in the past three years.

BH Properties’ purchase of the 298-unit complex comes as Fort Myers is experiencing a surge in population and job growth that ranks it among the fastest-growing communities in the nation since 2010, according to U.S. Census figures.

As such, apartment investors have flocked to Southwest Florida to capitalize on historically low home ownership rates and other trends that favor multifamily rental deals. In 2018, for instance, four of the largest five commercial real estate transactions in Charlotte, Lee and Collier counties involved apartment projects, records indicate.

In the case of Millennium, BH Properties acquired the three-story complex at 9505 Blackwood Circle from an affiliate of Rohdie Group, of New York.

Multiple attempts to reach BH Properties officials were unsuccessful.

Completed in 2018, Millennium features “chef-inspired kitchens with custom cabinetry and granite countertops” and amenities that include a salt water swimming pool, fitness center and fire pits. Monthly rents range from $1,222 to $1,893, according to Apartments.com.

As part of the acquisition, BH Properties obtained $24.3 million in mortgage debt from government-sponsored lender Fannie Mae and executed a 99-year ground lease for $30 million in 10 days, according to the company’s website.

“While we don’t look to close every transaction in two weeks, our team has the experience, skill set and commitment to make a deal happen and close with amazing speed as we remain committed to expanding our presence in the net-leased space,” Steve Gozini, BH Properties’ president and founder, says in a statement.

BH Properties, which owns roughly 100 properties in 17 states and has completed about $2 billion in total deals, according to its website, owned only a pair of retail properties in Florida, in St. Cloud and Rockledge, prior to the Millennium transaction.

 

 

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