Investor pays $63M for two Naples apartment communities

Sharp Key Capital, a New York real estate investment firm, has bought two Naples apartment communities in a pair of deals totaling $62.9 million.

The communities are in the city’s Golden Gate community and total 351 units.

Sharp Key Capital, in an email, says its plans are to make renovations to the two properties, one which is 25 years old and the other is 38 years old.

The larger of the two is Coral Palms at 4539 Coral Palms Lane just off Sunshine Boulevard near Golden Gate Parkway. The 288-unit property sold for $50.4 million.

Coral Palms was built in 1987 and sits on 18.05 acres. It’s made up of 36 residential buildings and a single-story clubhouse.

Plans are for significant aesthetic exterior improvements, the firm says.  

Sharp Key Capital borrowed $44 million for the acquisition from Key Bank in a loan set to mature October 2028.

The seller is Minnesota-based TE Miller Development which, according to Collier County property records, paid $25.05 million in 2006 for the community.

The second property is the Residences on 16th at 5194 16th Place SW, which is west of South Boulevard and just south of Green Boulevard. The 63-unit property sold for $12.5 million.

(The Business Observer previously reported some of the details of this transaction.)

Residences on 16th was first built in 2000 and sits on 5.2 acres. It is made up of 16 buildings.

Plans call for operational repairs to the exteriors and common areas of the community, the firm says.    

Sharp Key Capital borrowed $8.7 million for the property in a loan set to mature April 2027. Key Bank was also the lender in that deal.

The seller is Orlando based Opus Reserve which property records show paid $15 million for it in 2022.

Sharp Key Capital is a private investment firm. It was founded in 2012 and operated as Axonic Properties until July. Ben Platt, a director with the firm, says in an email that the rebrand happened after managing principal Jonathan Shechtman and principal Brian Kennedy bought out a third partner, Clayton DeGiacinto.

The firm was founded as the property-buying arm of Axonic Capital before it was spun off in 2017.

It has owned and operated a portfolio totaling $2 billion in transaction value. That portfolio includes 14 properties in the state. Of those, seven are in the Tampa Bay market.