Insula Cos. buys, plans upgrades to Rivermill, Village Square apartments

BUYER: FL Rivermill LLC (Insula Apartment Management LLC), Sarasota
SELLER: Rivermill LLC
PROPERTY: 12429 Little Road (main address) and 12301, 12307, 12313, 12319, 12325, 12331, 12339, 12345 and 12429 Hudson
PRICE: $5 million
PREVIOUS PRICE: $5.2 million, June 2003

BUYER: FL Village Square LLC (Insula Apartment Management LLC), Sarasota
PROPERTY: 10700 - 10717, 10719, 10721, and 10723 Buckingham Court; 10700, 10701, 10702, 10703, 10704, 10705, 10706, 10707, 10708, 10709, 10710, 10711, 10712, 10713, 10714 and 10715 Ipswich Court; 10700 - 10712 and 10714 Parliament Court; 7109, 7110, 7111, 7113, 7115, 7117, 7119, 7121, 7123, 7125, 7127, 7129, 7131, 7133, 7135, 7137, 7139, 7141, 7143, 7145, 7147, 7149, 7151, 7153, 7155, 7157, 7159, 7161, 7163, 7165, 7167, 7169 and 7171 Tudor Lane; and 10700 - 10715 Yorkshire Court, Port Richey
PRICE: $4.2 million
PREVIOUS PRICE: $3.55 million, June 2003
LAW FIRM ON DEED: Foley & Lardner LLP, Tampa

PLANS, DESCRIPTION:
Sarasota-based Insula Cos. purchased the 136-unit Rivermill Apartments in Hudson and 92-unit Village Square Apartments in Port Richey for a combined $9.2 million.

The price equated to $40,351 per unit. That figure is lower than the two-year average price per unit for multifamily space ($72,609) in the Tampa Bay area, according to the CoStar Group.

The 27.67-acre Rivermill Apartments was built in 1985. The similarly aged Village Square sits on an 8.06-acre parcel. The apartments share comparable community amenities: a swimming pool, clubhouse and laundry facilities.

The previous seller, an affiliate of San Antonio-based American Opportunity for Housing, was forced to sell by bondholders as part of the company's bankruptcy.

The sale eliminated income and rental-rate restrictions on the two apartments.

“We felt it was a good opportunity,” says Jeff Talbot, principal responsible for acquisitions, disposition and financing for Insula Cos. “There was quite a bit of distress. These properties really haven't been touched in 10 years. Rental rates can be raised to market, but that is not our concern yet. We want to improve the physical condition first.”

Insula has budgeted about $1 million for the renovation of Rivermill, improving its leasing office, clubhouse, swimming pool, exterior, parking and landscaping. It expects to spend about $400,000 on rehabbing the smaller Village Square with improvements to include better signage on U.S. 19 and upgrades to the exterior, pool area, clubhouse and leasing offices.

Insula Cos. owns a portfolio of more than 2,500 units and has more than $150 million in assets in Florida-based apartment complexes.