TALLAHASSEE, FL-A two-property, 505-unit apartment portfolio traded for $6.7 million. Aspen Square Management snapped up the properties in an all-cash transaction.
Multifamily investment brokers John Stone and Jason Stanton of Colliers International Tampa Bay, along with investment brokers W. Hayes Swann and Huston Green of Colliers International Atlanta, worked on behalf of the sellers. Palms of Magnolia's seller was Worthington Apartments, LP and Palms of Apalachee's seller was Las Palmas Apartments, LP, both Georgia companies.
The properties were marketed as part of a larger 1,256-unit portfolio of eight apartment communities located in Atlanta and Tallahassee. The properties are 50% occupied at the time of the sale.
“These are the kinds of deals a lot of investors are looking for, but not everybody has the ability to do them,” Stone tells GlobeSt.com. “You not only have to buy them but you also need the liquidity to do renovations and carry the property.”
Palms of Apalachee is located at 2855 Apalachee Parkway, and Palms of Magnolia Apartments is located at 1112 South Magnolia Drive. The short sale transaction closed 20 days following the effective date of the sales contract. The properties received three legitimate offers.
“Aspen has built its entire company on buying old properties, renovating them, repopulating them, and eventually selling them at a profit,” Stone says. “Initial underwriting suggests that the investment should generate a 20%-plus IRR over a five-year hold.”
Palms of Apalachee was built in 1975 and features 277 units with 224,307 rentable square feet. Palms of Magnolia Apartments was constructed in 1972 and consists of 228 units with 230,313 square feet. The properties are about four miles away from Florida State University.
“There haven’t been many sales in Tallahassee,” Stone says. “Tallahassee as a whole is a pretty stable environment. It was not affected in the same way the rest of the state was thanks to the university and the government.”
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