(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
FORT MYERS, FL—Bank-owned Peppertree Apartments has traded for $2.3 million. The sales price represents $29,870 per multifamily unit and $44.29 per square foot.
Darron Kattan, Robert Goldfinger, and Kevin Kelleher, all of Franklin Street, represented the seller, a national bank. The bank sold the property to an international investor for more than the amount it mortgaged the property for before the foreclosure.
“The market is trending up,” Kattan tells GlobeSt.com. “If the previous owner had gotten good advice and hired proper professionals to help him, he could have sold the property, made a few dollars and avoided the foreclosure, instead of ending up with nothing.”
Kattan says the sale marks a continued presence and flow of international dollars into commercial, and particularly multifamily, investments in Florida. While this property was a bank REO, it was stable and in good condition at the time of sale. The buyer got a good deal on the asset with respect to replacement cost, cash flow and future value.
Built in 1990, Peppertree is located at 3011 Broadway. The property is concrete block construction with stucco exteriors. Peppertree sits on nearly five acres and includes nine two-story buildings.
“Fort Myers has recovered tremendously,” Kattan says. “Multifamily occupancy is strong, free rent concessions are few and far between and the market is on the uptick.”
Just three years ago, the economy forced rents down 30% to 40%. Lower rents and a lack of new housing construction has helped stabilize the area.
“Generally Southwest Florida has become desirable again in investors’ minds with lots of capital trying to find deals to invest in with a mind towards the future upside they believe exists in that market,” Kattan says. “The growth and real estate industry, which went hand in hand to lead to the boom down there, is coming back into the picture.”
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