Condo Converter Buys Two Trophy Apartments for $68M

Sunvest Communities LLC, a condo conversion firm based in Hollywood, paid a total $68 million, or an average $161,139 per unit, for 422 units at the two-year-old Grand Venezia at Bay Watch and its sister property, the 86-unit Bellagio at Bay Watch.

Del American Inc., a national multifamily developer based in the Orlando suburb of Altamonte Springs, sold the Grand Venezia for $49 million, or $145,833 per unit, and the remaining inventory at Bellagio at Bay Watch for $19 million or $222,087 per unit. Bellagio is currently undergoing conversion to condominiums.

Sean Williams, vice president in the Florida office of Boca Raton-based Apartment Realty Advisors, and Marc deBaptiste, an ARA principal, negotiated the deal for Del American and also found the buyer. Sunvest represented itself in the transactions.

"The Grand Venezia represented one of the last remaining apartment projects located directly on Tampa Bay," says deBaptiste. "Sunvest was also able to structure an acquisition of the remaining units at the Grand Bellagio to enhance its market strength."

Both properties sit in an infill location directly on Old Tampa Bay. The apartments are "strategically located due east of US 19 and Belleair Road and are convenient to employment centers, retail, shopping and primary expressways," deBaptiste adds.

The condo conversion craze continues throughout Florida and Georgia, brokers in a dozen submarkets tell GlobeSt.com. "The ever-increasing home values throughout the state have created a high demand for properties with condo conversion potential," deBaptiste tells GlobeSt.com. His company has either sold or had under contract 17 transactions with condo converters with six of the properties located in the Tampa Bay area.

ARA's Williams has concluded eight multifamily property transactions totaling 2,515 units and valued at $224.4 million in metro Tampa this year. Apartment Realty Advisors Florida has closed $800 million in sales to date.

Apartment Realty Advisors is a national multifamily brokerage and investment advisory company with annual sales volume of $4 billion. The ARA partnership includes investment sales brokers in Atlanta, Boca Raton, Dallas, Charlotte, NC, Dayton, OH and Houston.