New York-based Sterling American Property Inc. and BH Management bought the 94%-leased property at 15420 Livingston Ave. for $10.1 million or $47,418 per unit. Praedium and Affirmative didn't disclose what they paid for the two-story asset when they purchased the real estate in July 2001. But in a prepared statement, the firms say "numerous capital improvements have been made, including landscaping, unit interiors, pool deck and clubhouse."

"The Palms property offered us a superb opportunity to buy a strongly situated property, renovate both the exterior and interior of the development, and then sell (it) in a market supported by its proximity to Orlando," says Frank Patafio, a Praedium Group principal. "The Florida market continues to offer Praedium great opportunities like the Palms." Lutz has an estimated permanent population of 17,000, according to the last Census.

"In the three years we've worked with Praedium, we've been able to take advantage of a number of investment opportunities," says Andy Jubelt, president of Affirmative Equities. "Our disposition of the Palms is the latest in a series of properties we've successfully rehabilitated, leased, stabilized and sold together."

Gerald A. Smith, a vice president at Orlando-based Smith Equities Corp., negotiated for the sellers. Patafio says the Praedium Group focuses on under-performing and under-valued assets throughout North America. The company has $3.5 billion in total investments to date. Its portfolio comprises 1,200 assets totaling 33 million sf of commercial space and 28,000 multifamily units. Praedium was formed in 1991 with a leading international investment bank as its sole investor.

Praedium is currently investing in its most recent $465-million real estate private equity fund, Praedium Fund V, which will be leveraged to acquire $1.5 billion in properties. Patafio says the fund will invest in mid-cap assets throughout the US and Canada in the $10-million to $70-million range, targeting multifamily, office, retail and industrial properties.