Jupiter Realty Pays $35M for 586-Unit Portfolio

Jupiter Realty Corp. purchased the two properties in the portfolio from CreditRE Mortgage Capital, a division of Related Capital. The portfolio was sold at a capitalization rate of 7%, based on year-end NOI and reserves of $250 per unit. Both properties were assumed with low interest rate bonds totaling almost $21.4 million.

The properties sold were Hampton Bay and Harbour Pointe. Both are class B+ garden-style communities. CreditRE Mortgage Capital rehabilitated the properties and sold them after the typical five-year time frame, according to Jamie B. May, chairman and CEO of Naples, FL-based JBM Realty Advisors.

Hampton Bay, situated on 28.3 acres, consists of 352 units in 19 two- and three-story wood-frame buildings. Amenities at the complex, completed in 1987, include two pools, a Jacuzzi, an interactive recreational fountain, a 24-hour fitness center, two lighted tennis courts and a covered car care center. The complex has six floor plans that feature screened lanais, walk-in closets, bay windows, built-in bookcases, washer and dryer connections and gourmet kitchens. In addition, some units have fireplaces, sunken living rooms and vaulted ceilings. A new roof is planned for Hampton Bay, according to May.

Located on nearly 14.8 acres, Harbour Pointe consists of 234 units in 15 two-story wood-frame buildings. This complex was finished in 1986. Amenities include a pool, a Jacuzzi, two lighted tennis courts, a 24-hour fitness facility, picnic and BBQ areas and an on-site lake. Harbour Pointe has three floor plans with screened lanais, walk-in closets, wall-to-wall carpeting, washer and dryer connections, gourmet kitchens and outside storage.

"It seemed like everybody in the world was interested in this property," says May. "The financing was extremely favorable." The buyer specializes in buying properties with bond financing, he adds.

JBM Realty Advisors' May, Trish Barton, managing director, and Eric Ammon, director of the company's Tampa, FL, office, represented both Jupiter Realty Corp. and CreditRE Mortgage Capital in the transaction.