Tradition at Palm Aire deal becomes the latest suburban multifamily rental property to trade amid coronavirus pandemic.
Continuing a trend of high-profile multifamily rental sales amid the COVID-19 pandemic, an Atlanta company has purchased the Tradition at Palm Aire apartments in Manatee County.
Penler affiliate Penler de Palm Aire Owner LLC acquired the 248-unit complex, at 8445 Gardens Circle, in mid-September for $48.11 million, according to Manatee County property records.
“This asset fits perfectly with our strategy of acquiring high-quality properties that are undervalued due to temporary market conditions and can be enhanced through customized repositioning strategies,” says Penler co-founder Graham Carpenter, in a statement. Carpenter did not return a telephone call for comment on the purchase.
The new owner is expected to undertake a roughly $5 million capital improvement program at Tradition, which was completed on 28 acres in 1991, to upgrade the property’s clubhouse and fitness center, landscaping and unit interiors.
Tradition’s amenities include three swimming pools, an outdoor kitchen, a tennis court and walking trails. Units average 1,001 square feet.
Tradition was sold by Fort Myers-based Preston Giuliano Capital Partners and represented in the sale by NorthMarq’s Tampa investment sales team. Northmarq also arranged a $31.9 million loan with Freddie Mac for Penler, according to Manatee County records.
“Tradition was a great opportunity for Penler to acquire a value-add asset in an area with proven growth and stability,” says NorthMarq Managing Director Luis Elorza, who negotiated the sale together with the firm’s Justin Hofford.
Formed in early 2019, Penler last year bought a 230-unit apartment complex in Charlotte, N.C., and is developing a pair of 240-unit complexes in Dawsonville, Ga., and Gallatin, Tenn. Both are slated to open by year end, according to the company’s website.
Suburban multifamily rental properties have become increasingly attractive to investors during the COVID-19 pandemic because they are perceived as a “safer” alternative by many renters to more urban apartments.
In the past three months, the Sage at Palmer Ranch apartments in Sarasota County have sold, for $60.4 million; White Oak Partners of Ohio purchased the 930 Central Flats complex in St. Petersburg for $64 million; and Ashcroft Capital acquired the Anthem Clearwater community for $55.75 million.
In July, Bridge Investment Group spent $101.25 million to acquire the Veranda at Westchase complex in Tampa and the Viera Bayside apartments, in St. Petersburg.