The Commercial Real Estate Alpha Site

via Herald Tribune

Written By John Hielscher
Staff Writer 

Sales reflect new global interest in the robust profits that owners are reaping from multi-family investments in Southwest Florida

Multi-family housing is so hot in Southwest Florida that even the Aussies are buying.

Last month an Australian investment fund paid $54.7 million for the 248-unit Anson on Palmer Ranch apartment complex, one of the region’s top-dollar multi-family sales so far this year.

While the Sarasota-Manatee rental property market has lately attracted investors from across the country, the acquisition by AustralianSuper — that country’s largest industry super fund — reflected new global interest in the robust profits that owners are reaping from local multi-family investments.

The bigger communities draw the big bucks, but many sales also involve smaller complexes, some of them decades old.

In addition, developers have completed, are building or have plans for more than 2,000 new rental housing units in the city of Sarasota and in several sizable new complexes close to I-75.

“The greater Sarasota-Bradenton area is one of the fastest-growing markets for relocation in the country,” said Stan Rudstein, a commercial broker. “What’s behind a lot of this is the many of these people are baby boomers, and older, and they have a little different mindset about purchasing. They want to live an upscale life-style, and some of the recent apartment communities are upscale developments that give them the opportunity to live nicely, but not make an investment.”

During the post-recession years, giant investor funds scooped up single-family homes out of foreclosure and converted them to rentals. More recently, private and publicly traded real estate investment groups have acquired apartment complexes to tap into rising demand and escalating rental rates.

Some of the newer complexes may help alleviate the shortage of rental housing, especially near the downtown area, but may not offer the kind of affordable living that advocates had hoped for.

“Occupancy rates are very high with all residential properties,” Rudstein said. “As long as the economy holds, I don’t see that really slowing down.”

Some of the complexes are sold almost as quickly as they are built.

Anson on Palmer Ranch, which opened this year, was sold by developer Spanos Corp. of California. The luxury community leases one-, two- and three-bedroom units in three-story buildings from $1,325 to $2,125 per month, according to its website.

AustralianSuper had been an investor in the project, for less than $2 million, a report showed. The company declined to discuss the purchase.

“We are not going to comment on the acquisition at this time,” said Stephen McMahon, head of external relations at the Melbourne, Victoria, company that manages about $140 billion in retirement savings for 2.2 million members.

For complete article, CLICK HERE <——————

For Apartments that are currently for sale, CLICK HERE <—————-