BUYER: Clearwater Oaks Townhomes LLC (principal: Investors Management Group Inc.), Los Angeles
SELLER: Hidden Oaks Apartments Inc.
PROPERTY: 1121 Druid Road, Clearwater
PRICE: $8.5 million
PREVIOUS PRICE: $1.9 million, September 2006
PLANS, DESCRIPTION: Los Angeles-based private equity firm Investors Management Group Inc. purchased the 200-unit Hidden Oaks Apartments in Clearwater for $8.5 million.
The price equated to $42,500 per unit.
The concrete-block, two-story development was originally built in 1949. It features 157,115 square feet of total space, including laundry facilities. The apartment was 92% occupied at the time of the sale. All of the units are two-bedroom and two-bathroom townhomes and average 1,000 square feet of living space.
John Burpee and T. Sean Lance of NAI Tampa Bay represented the seller. Burpee says Investors Management Group plans a major rehabilitation to the property over the next several months.
“The buyer will be repositioning the property,” he says. “It's a C+ asset, they hope to bring it a B or a solid B+. They're planning a complete upgrade to the exterior and the landscaping. The majority of the unit interiors will get new flooring cabinets and new appliances where needed.”
Burpee says the buyer seemed most attracted to the location of the apartment particularly with the demographics of the neighborhood and nearby employers.
The purchase price equated to a payoff ratio based on income (capitalization rate) of 7.5%.