Naples Realty Spends $71M for 1,000-Unit Portfolio

FORT MYERS, FL-Naples Realty Group has purchased a three-property portfolio consisting of 1,000 multifamily units in town for a total of nearly $71.4 million. Two of the properties–Beach Club and Viridian Lake–are sister properties with a combined 640 units. The third property sold is Park Crest at the Lakes, a 360-unit luxury property.Equity Residential was the seller of Beach Club and Viridian Lake, class B+ garden-style apartment communities situated on about 40 acres. Both properties were completed in 1991 and feature three-story buildings with barrel tile roofs. Beach Club sold for close to $19.2 million, or $59,863 per unit, while Viridian Lake sold for approximately $21 million, or $65,645 per unit.Beach Club has 16 wood-frame structures with stucco exteriors. Viridian Lake has wood framing in 16 buildings with wood siding. Both communities surround a three-acre lake and have several amenities, such as a half-mile jogging trail, swimming pools, a poolside Tiki bar with barbecue grills, an outdoor basketball court and an outdoor sand volleyball court.Park Crest at the Lakes, a two- and three-story, wood-frame complex finished in 2000, sold for $31.2 million, or $86,666 per unit. As part of the sale, the seller, NRI-CKT Fort Myers I LLC, gave a $10,000 per-month income guarantee for two years. These apartments, which range in size from 812 sf to 1,268 sf, feature ceramic tile at the entrances, and in the kitchen and laundry room; 9-ft ceilings and vaulted ceilings in top-floor apartments; built-in entertainment centers; and enclosed solariums or screened patios in all units.The 36-acre community has three large lakes with five lighted fountains, three controlled-access entry gates, a clubhouse with a 24-hour resident business center, two lighted tennis courts, a picnic area with barbecue grills and a car care center. The community has more than 900 surface parking spaces, including 88 garages and 36 covered carports.The capitalization rate at the closing for Park Crest was 5.9%. It was 6.02% and 5.99% for Beach Club and Viridian Lake, respectively.Jamie B. May, chairman and CEO of Naples, FL-based JBM Realty Advisors, and Trish Barton, the company’s managing director, were the exclusive investment advisers/brokers that marketed the properties.