Multifamily Bought for $22M, Sold for $44M

MIAMI—Aventine at Naples, a 350-unit multifamily property, has traded for $44.25 million. The Praedium Group and Greystar Real Estate Partners purchased asset in 2010 for $22 million. The buyer was Continental Realty.

"When we initially acquired this class A, award-winning asset in 2010 out of foreclosure, the occupancy rate was suffering,” says David Dowell, director at Praedium. “We recognized the potential in this asset and its location. We implemented a renovation plan to turnaround this property, completing $4.3 million of capital improvements, which included a full re-skin.”

Completing the capital improvement program and enhancing the operations of the multifamily property dramatically improved the quality of the asset. Occupancy increased from 55% at acquisition to 96% at disposition.

“When we acquired Aventine in 2010, the Southwest Florida market was considered one of the worst performing apartment markets in the country and had fallen out of favor with investors,” says Mark Hafner, senior managing director of Investments at Greystar. “However our data showed that the Naples market was poised to rebound. While the acquisition was viewed as a contrarian investment at the time, we believed that we had acquired the asset at an extremely attractive basis and were confident that by investing in the property, we could restore it to its former market leading position and benefit from a recovery.”  

Aventine at Naples is a garden-style multifamily community next to Colliers Boulevard, a major north/south thoroughfare in the area and the main access point to Marco Island resort. The development was recognized in 2003 as a national winner of the NAHB Pillars of the Industry Award for Best Garden Apartment Community. The NAHB Pillars award is considered one of the most prestigious awards in the industry for new multifamily developments.