Beach Club, located at 600 Beach Drive just off US 90, contains four beds per unit with students paying monthly rent based on year-long and sharing common areas within each unit. Capmark, now part of Berkadia Commercial Mortgage LLC, has held the property since the property was foreclosed in 2007 and the sale took several months to complete in two separate phases.
"A lot of these deals are taking a significant amount of time," Brian Moulder, investment advisor with the Jacksonville office of Southeast Apartment Partners, tells GlobeSt.com. Part of the reason involves greater reporting to Freddie Mac on multifamily deals it agrees to finance, he says.
The majority of units at Beach Club are rented by FSU students, while a smaller number are leased to students at Tallahassee Community College, Moulder says. Each unit generates monthly rents of $1,868, or $467 per occupant, according to marketing materials.
Moulder adds that JLC Southeast, which is largely an apartment developer, is currently in acquisition mode for properties in foreclosure or receivership. He says the buyer is paying roughly 15% below Beach Club's asking price of $15 million and will put at least $1 million into improvements to the property, such as parking lots and entrances.
Other investors are expressing interest in distressed multifamily assets throughout the northern edge of Florida, Moulder says. "We're seeing a massive amount of properties that are controlled by banks," creating tremendous opportunity for discount acquisitions, he says.
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