(Read more on the multifamily market.)
GULFPORT, MS-Six years after building the 200-unit Cambridge Apartments, the Purvis-based developer has decided it was time to sell the class A asset. The complex ended up trading hands to a Salt Lake City buyer for $16 million in an off-market transaction.
Jessica Murks, commercial sales broker with Coldwell Banker Alfonso Inc. in Gulfport, says the developer was ready to sell because of an increasingly active market thanks to the post-Katrina recovery. Murks says she approached RealSource Holdings LLC, which already had a presence in the area, about buying the complex at 10900 E. Taylor Rd.
“The buyer is familiar with the area and already has a presence there so it worked out,” says Murks, who brokered both sides of the deal. She tells GlobeSt.com that Cambridge Apartments was developed with larger unit sizes than the average Gulfport apartment complex, which was another attractive feature. She adds that RealSource isn't planning major renovations, but will make some cosmetic upgrades, including painting and landscaping.
The 90%-leased Cambridge Apartments, situated on 16 acres, has one-, two- and three-bedroom units averaging 740 sf. Monthly rents range from $865 to $1,065. Arlington Properties Inc. of Birmingham, AL will lease and manage the complex for the new owner.
RealSource is buying into Cambridge Apartments at a time when rental rates have increased more than 20% at class A complexes due to low supply and high demand in the post-Katrina era, according to a recent report published by Rand's Gulf States Policy Institute. Additionally, Cambridge Apartments sustained only minimal damage from the storm, but that's not been the case with its competitors. Rand researchers found 64% of the multifamily units in the area still had some damage nearly two years later.
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