Please ensure Javascript is enabled for purposes of website accessibility

Sun Lake Apartments sell for $7.44 million

  • By
  • | 10:00 a.m. April 10, 2015
  • | 2 Free Articles Remaining!
  • Tampa Bay-Lakeland
  • Share

BUYER: HCG Brandon II LLC (managers: John Kinzelberg and Jeff Katz), Chicago
SELLER: Sun Lake Apartments LLC
PROPERTY: 1212 Askew Drive, Brandon
PRICE: $7.44 million
PREVIOUS PRICE: $6.2 million, April 2008
LAW FIRM ON DEED: DLA Piper LLP, Los Angeles

The private real estate investment firm Highgate Capital Group purchased the 88-unit Sun Lake Apartments for $7.44 million.

The price equated to $84,517 per square foot. That figure is higher than the two-year average price per unit for multifamily space ($72,609) in the Tampa Bay area, according to the CoStar Group.

Built in 1985, the apartment complex has eight residential buildings and a clubhouse on a 10.38-acre parcel. Community amenities include basketball, tennis and two racquetball courts; a dog area; swimming pool and clubhouse/leasing center.

It was about 97% occupied at the time of the sale.

John Kinzelberg, managing principal for Highgate Capital Group, says the property was particularly desirable because of the firm's purchase of the 112-unit The Village at Brandon in September 2014 with Blue Rock Partners. That nearby property has since been rebranded as Park at Avalon.

“These are really perfect; they're two to three miles apart, which offers us synergies on the marketing side,” says Kinzelberg. “Seven years ago (building company) Aimco owned them both and then sold them to different buyers in 2007. We are just bringing them back together.”

Unlike at The Village at Brandon, none of Sun Lake's units has been upgraded recently. Highgate Capital Group is budgeting roughly $5,000 to $7,000 per unit for upgrades. It also plans to create a fitness center and to spend about $300,000 on improving the community's curbside appeal.

“We are looking to do more in Brandon and the greater Tampa Bay area,” he says. “All the micro-level drivers on the supply and demand side are only going to improve. We plan to buy [Sun Lake], fix it up and then hold it for five to seven years and then exit when we find the most opportune time.”

Highgate Capital Group currently owns close to 1,000 units and is actively looking to expand its portfolio in central Florida and the Southeast.

The purchase entity, HCG Brandon II LLC, mortgaged the property to Berkadia Commercial Mortgage LLC for $7.18 million.


Latest News


Special Offer: Only $1 Per Week For 1 Year!

Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning business news.
Join thousands of executives who rely on us for insights spanning Tampa Bay to Naples.