Sarasota Apartment Trades for $157,711 Per Unit
“The Lexington posed a very rare opportunity in the highly sought-after central Sarasota submarket, which has a historically high barrier to entry for value-add opportunities.”
SARASOTA, FL—Laguna Point Properties, a California investment company, has purchased The Lexington Apartment Homes here for $42.1 million, or $157,711 per unit. Cushman & Wakefield arranged the sale of the 267-unit complex, representing Forest Properties, a Boston-based property management firm.
Nick Meoli, executive director with Cushman & Wakefield’s Florida Multifamily Investment Sales Team, tells GlobeSt.com that the buyer plans on partially renovating interior units by adding washer/dryer connections and appliances in each unit, installing a stainless steel appliance package including microwaves, adding new Formica or hard-surface countertops in the kitchen and bathrooms and updating the interior paint to a more modern color tone.
“Exterior renovations will include new signage, repurposing the tennis court into a sports court or playground, adding grilling stations to both pool areas and resurfacing the parking lot,” Meoli says.
Meoli says The Lexington, built in 1974, has very little deferred maintenance. Forest Properties acquired the asset in June 2005 for $71,910/unit.
“Forest Properties did an excellent job maintaining the property and partially renovating the units along with building a new pool/sundeck, expanding the clubhouse including an expansive fitness center and laundry room, installing new roofs and installing high impact windows in every unit.”
The Lexington is centrally located between Interstate 75 and U.S. 301, providing accessibility along Florida’s west coast. The location is also convenient to Sarasota’s vibrant downtown and beaches.
Residences range from one- to four-bedroom units and average 1,040 square feet. The average market rent is $1,315. The property was developed in 1974, and select units have recently been updated with stainless steel appliances and vinyl plank flooring throughout.
Onsite amenities include two swimming pools, a fully renovated fitness center, tennis court, clubhouse with resident lounge, pet park and on-site laundry facility. All units have private balconies and patios, and many have lake views.
“Demand for well-located value-add properties in central and southwest Florida is very high, commanding 15-20 offers on almost every marketing assignment,” Meoli says. “The Lexington posed a very rare opportunity in the highly sought-after central Sarasota submarket, which has a historically high barrier to entry for value-add opportunities. Within the last five years, just one other pre-2000s built asset with over 100 units has traded in the area.