BUYER: Fort Adventure LLC (principal: Cristina Delaney), Miami
SELLER: PBE Cos. LLC
PROPERTY: 3011-3027 Broadway, Fort Myers
PRICE: $2.3 million
PREVIOUS PRICE: $1.44 million, December 1995
LAW FIRM ON DEED: Akerman Senterfitt, Miami
PLANS, DESCRIPTION: A South American investor purchased the 77-unit Peppertree Apartments for $2.3 million.
The price equated to $29,870 per unit or $44 per square foot.
Built in 1990, the 4.85-acre Peppertree Apartments property includes nine two-story concrete-block buildings. It features a swimming pool and laundry facility. The development was 90% occupied at the time of the sale.
Darron Kattan, Robert Goldfinger and Kevin Kelleher, all of Franklin Street Real Estate Services, represented the seller, a national bank, and Cristina Delaney of Artier Realty represented the buyer. Delaney is also the managing member of the Miami-based investment group.
Kattan in particular noted that the property was sold for more than the bank's mortgage principal prior to foreclosing on the apartment complex.
“The bank wound up making a profit,” Kattan says. “It was in good shape for a bank-owned deal. It was an older community, but with nice well-maintained units. It was probably a B asset in a C or C+ location. We continue to see greater and greater demand from investors wanting to buy [apartment properties].”
Because of the bank's higher expense level to maintain the property, Kattan says the purchase price equated to a pay off ratio based on current income (capitalization rate) of 6%. But he says that with a few changes, the new owner should be able to generate a cap rate of 7.5% or 8%.