TAMPA, FL—In an Internet-based auction following a 2011foreclosure, The Cove has sold for $50.5 million.Philadelphia-based Lubert-Adler acquired theTampa, FL waterfront multifamily community in ajoint venture with Lamar Group.

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LNR Property auctioned themultifamily asset. The previous owner had planneda condo conversion. Laramar, which manages about 3,500multifamily units across Central Florida, ownedCove from 1999 to 2005. The new owners have commissioned Laramar tomanage the property.

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Cove seems to fit nicely into Lubert-Adler's acquisitionstrategy. The firm, which invests on behalf of leading nationaluniversity endowments and state retirement systems, is focused oncreating "significant" current cash yield from mid-market sizerental assets through value-add executions.

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“We seek to achieve superior risk-adjusted returns for ourinvestors by acquiring and renovating multifamily assets that cangenerate a substantial portion of the returns from current cashflow,” says Dean Adler, CEO and cofounder ofLubert-Adler. “Our goal is to execute that strategy in top-tiersubmarkets of major cities with local experts.”

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Built in 1980, Cove has a waterfront location on Tampa Bay, witha swimming pool, clubhouse, and sundeck overlooking the water.Residents can walk, run, or bike historic Bayshore Boulevard, thebay's longest continuous sidewalk.

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Location-wise, Cove is near Interstate 75, Downtown Tampa, andTampa International Airport. The Tampa Aquarium, cruise shipterminal, and spring training camps for several major leaguebaseball teams are also nearby. Cove offers discounted rentalopportunities to members of the military stationed at nearbyMacDill Air Force Base, which employs more than 18,000 people.

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“The Cove represents another opportunity for us to execute [our]strategy,” says Adler. “We are partnering with Laramar, abest-in-class firm, which has superior local knowledge due to itslong-term management and previous ownership of the property.”

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Laramar will oversee a $3 million repair and renovation program.Last updated in 2003, the property's clubhouse will be upgradedwith a Wi-Fi lounge, business center, and improvements to thefitness center and clubroom. The existing tennis and racquetballcourts will be converted into an outdoor recreation area with alarge dog park.

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