ZMR Capital Expands Florida Portfolio and Enters Fort Myers

ZMR Capital is growing its exposure to the Florida market and breaking new ground. The apartment investor has acquired Park Place Apartments, a 388-unit apartment complex in Fort Myers, for $44.5 million. The purchase market ZMR’s entry into the Fort Myers market and the firm’s seventh purchase in Florida.

ZMR plans to spend $250 million in Florida over the next two to three years, and Fort Myers fits in perfectly with the firm’s investment strategy. The city is ranked among the top three population growth markets in the state. The property itself also has significant upside. More than half of the units have not been updated, and ZMR plans to execute a value-add plan with a multi-million-dollar budget for capital improvements, including adding in-unit washer/dryers, kitchen remodels with stainless steel appliances and new plank flooring as well as exterior upgrades.

ZMR Capital isn’t the only investor looking to expand in Florida. There have been a slew of apartment deals in the market this year, and ZMR co-founder and CEO Zamir Kazi says that the market is more competitive than it has been in two decades. In March, Southport Financial, one of the largest affordable housing investors in the country, expanded its Florida multifamily portfolio with the purchase of The Sands at St. Lucie in Fort Pierce. Southport Financial purchased the property for $30.2 million from Code Capital Financial. The property operates under Section 42, a subsidized housing and tax credit program that restricts rental rates and the income of residents to qualify as affordable housing.

In the same month, Investors Management Group Inc. sold a 230-unit multifamily community in Port St. Lucie, Florida, to Covenant Capital Group for $41.6 million. The apartment community, Waterleaf Townhomes and Apartments, is located at 1900 SE Hillmoor Dr. in the southern Florida city. And, Texas-based, privately-held real estate firm, LYND acquired a 280-unit, garden-style apartment community in Margate, Florida, for $50.8 million, from the Colorado-based, multifamily owner and operator, Grand Peaks.

ZMR has been able to curb the competition by relying on its longstanding reputation and activity in the market. Kazi says that they have deep relationships they have built over years that allow them to buy properties like Park Place, which was acquired in an off-market transaction. Mike Regan of CBRE’s Tampa Office represented ZMR and the seller.