SARASOTA, FL – Hunt Companies (Hunt) along with its co-developer, Carter USA, has sold a luxury residential development in Sarasota, Florida.  The DeSota, a class AA, 180-unit complex which includes a resort-style swimming pool, clubroom, outdoor deck, gym quality fitness center and 24-hour concierge was completed in 2017. 

The 10-tale concrete development includes one, two, and three bedroom apartments with 15,000 square feet of ground floor retail. Interior features include condominium-grade finishes including quartz countertops, stainless steel appliances and wine chillers. The well-appointed units averaged 1,139 square feet.

Hunt Executive Vice President, Dominick Cristiano, who managed the development, lease up and disposition of the property, said, “We are very pleased with the outcome of a well-conceived and executed business plot. A lot of the credit goes to our partner [Carter] and the Pinnacle team for their successful leasing effort over the last several years. The sales price reportedly represents one of the highest price per unit sales ever achieved in Florida on a multifamily transaction.”

Located at the corner of 2nd Street and Central Avenue in the heart of downtown, The DeSota is directly across the street from Whole Foods. It is uniquely positioned within walking distance of the cultural arts district, central business district, more than 20 restaurants, numerous retail shops and the Sarasota Marina.

Walker Dunlop Investment Sales brokered the transaction.

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MILWAUKEE, WI – Chicago based Tricap Residential Group,an owner and operator of multifamily communities, has closed on the acquisition of Franklin Park Apartments for a buy price of $6,550,000. This transaction will add another 128 apartments to Tricap’s existing portfolio and is their first acquisition in Wisconsin. Tricap now owns and operates apartment communities in five states.

The property will be rebranded as one of Tricap’s Haven communities. Tricap will do a value-add strategy including significant unit renovations, modernization of the common areas, and professional management practices that will maximize rents at the property.

“We are thrilled about this opportunity as this acquisition allows us to continue our execution expertise on another well-located, well maintained suburban asset,” said Bryan Pritchard, President/CEO of Tricap.  “The continuing trend of renting versus owning has spread to suburban submarkets, and our renovated apartment communities allow us to offer a very high-quality product at an affordable price.  Combined with our focus on exceptional service, we believe we have the best value proposition for renters in the marketplace.”

The investment is co-sponsored with The Wolcott Group, the fourth deal the two firms have partnered on.  The acquisition was financed with a loan assumption of an existing Freddie Mac mortgage originated by Justin Nelson of Walker & Dunlop.

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DALLAS, TX – After posting significant gains in 2018, the U.S. multifamily market is expected to show continued strength this year, amid swelling demand among younger adults for rental units and investor optimism in this market sector, according to BBG, a leading commercial real estate due diligence firm.

Last year, the multifamily market saw dramatic growth, with a 15% jump in apartment transactions totaling nearly $168 billion, an industry report said. This year, an estimated 280,000 multifamily units will be completed, slightly down from 290,300 units in 2018, though it still reflects a healthy market.

One of the largest factors fueling this demand is more young adults residing in multifamily properties. This has been attributed to various reasons, including high debt levels incurred among this age group, the desire to be mobile and flexible, the lack of affordable single-family home ownership options — particularly in metropolitan areas — and a preference to live in or close to urban cores.

Rents for multifamily housing have been steadily rising due to the increased demand.

The average asking rent for multifamily units across the country rose nearly 5% in 2018, or $1,441 per unit, from the end of 2017, according to one research report, adding that the fourth quarter of 2018 was the 36th consecutive quarter of growth in rental rates.

While the vacancy rate for multifamily units ticked up slightly to 4.8% in the first quarter of 2019 from 4.7% at beginning of 2018, the report said, the rate was still significantly below 8% posted a decade ago.

Existing multifamily properties have increased in value as it is more expensive to build more product as a result of rising new construction costs, including labor, materials and equipment. Value add properties are in high demand where moderate to significant renovations can increase rents significantly.

New trends in multifamily living have emerged during this period of growth, such as vacant department stores being repurposed for apartment rentals and the proliferation of co-living buildings in major cities. New amenities and finishes are being added in all classes of properties, including added attention to pet amenities, common areas that encourage connectivity, and various parking features including electric charging stations, bicycle storage, motorcycle parking, and shared car services located on-site.

Mary Ann Barnett, MAI, BBG Multifamily Practice Leader and Managing Director, commented: “In 2018, multifamily housing had a banner year as a result of a robust economy, a continuing trend of a younger generation continuing to migrate to urban areas and increased investor demand for this asset class. We anticipate that multifamily will remain stable in 2019 as underlying market fundamentals continue to support this market.”

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