Featured Deal Featured News In the News Investors Management Group Sells Florida Multifamily for $41M

Investors Management Group Inc. has sold a 230-unit multifamily community in Port St. Lucie, Fla., to Covenant Capital Group for $41.6 million.

The apartment community, Waterleaf Townhomes and Apartments, is located at 1900 SE Hillmoor Dr. in the southern Florida city.

IMG will exchange the proceeds of the sale with its investors, as part of a long-term multifamily investment strategy.

IMG originally acquired the property in 2017 for $26.8 million, prior to investing $3.1 million in the property for renovations in the townhome’s interiors, the fitness center, the pools, sports park and other common-area amenities. The renovations and upgrades implemented by IMG secured an average $200 premium from renters.

Franklin Street’s Darron Kattan represented IMG in the recent disposition.

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Yield Pro: IMG announces the sale of a 230-unit townhome property in South Florida for $41.55 million

Investors Management Group, Inc. (“IMG”) announced that it has sold Waterleaf Townhomes and Apartments, a 230-unit community located at 1900 SE Hillmoor Drive in Port St. Lucie to Covenant Capital Group for $41.55 million. IMG and its investors will exchange the proceeds as part of a long-term multifamily investment strategy.

IMG acquired the property in 2017 for $26.75 million. The Company invested $3.1 million on renovations in the townhome interiors plus the fitness center, pools, sports park, and other common-area amenities. IMG’s renovations attracted renters who paid an average $200 premium for the upgrades.

Darron Kattan of Franklin Street represented IMG in the transaction.

Read more Yield Pro.

Featured News In the News Trends

Tampa Bay Business Journal: Pat Kelly sees Westshore as uniquely positioned for a post-Covid world

For Pat Kelly, taking the helm at the Westshore Alliance feels like a full-circle moment.

Kelly, regional managing partner of Franklin Street, was named president of the board of directors at the alliance’s annual meeting in late February. 

Kelly has been involved with the district since the early 1980s, when Florida was requiring any large-scale development to seek a status known as development of regional impact or DRI. At that time, the DRI review process was meant to ensure local and state governments worked together to manage growth, and every new building proposed in Westshore would have been designated a DRI. Instead, Kelly and other real estate leaders joined forces to form the alliance and have the entire district certified as one DRI.

“Our primary reason for coming together was to create some efficiency,” Kelly told the Tampa Bay Business Journal. 

Now, Kelly is working with the alliance on several initiatives to improve pedestrian access and connectivity throughout the business district, which has seen an influx of residential development in recent years. He spoke with the Business Journal about Westshore’s post-pandemic future. This interview has been edited for brevity and clarity.

Congratulations on the new post. In terms of taking on the leadership of the alliance — why now? We are coming out of a cycle that was as interesting as we’ve ever seen in our industry, meaning the pandemic. When I look at all of the walkability factors we need to implement, it’s all about creating a place where people want to be and walkability. I just think it’s appropriate. Our day is now. As you’re well aware, most of the emphasis last cycle was on downtown, and now I think Westshore is going to be perfectly positioned for the next cycle.

Read Pat’s full interview from the Tampa Bay Business Journal.

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Business Observer: Tampa groups give awards, establish leaders

The Westshore Alliance has named veteran commercial real estate professional Patrick Kelly to be president of its board for 2021.

The group, with more than 400 business and community members, works to promote and enhance the Westshore Business District in suburban Tampa.

Kelly, who has four decades of CRE experience working with Franklin Street, Redstone Commercial, Grubb & Ellis and Vantage Cos., was a founding member of the alliance in 1983. He has also worked on some of Westshore’s most prominent office and mixed-use projects.

“Westshore has experienced incredible growth over the years, going from an office district to what is now a nationally known hub for high-quality retail, dining, entertainment and hospitality, as well as an increasingly popular place to live,” Kelly says, in a statement.

Kelly says the group’s focus throughout 2021 will be to improve connectivity and walkability and advocate for better transportation infrastructure.

The district is home to more than 4,000 businesses, over 250 restaurants, 350 retail stores, 7,000 hotels rooms and 15,000 residents. There are also more than two dozen new projects underway with a total investment exceeding $1 billion.

In addition to Kelly, a regional managing partner at Franklin Street, a pair of other area real estate executives have been named to the group’s executive committee.

Andrew Wright, Franklin Street’s CEO, and Cousins Properties’ Patrick Gehm are two of nine executive committee members for the next year.

Read more from Business Observer.

Featured Deal Featured News In the News

Now Habersham: TJ Maxx, Bealls to locate in old Cornelia K-Mart

There aren’t any more blue light specials, but there could be plenty of good deals coming soon to the old Kmart shopping center in Cornelia.

A commercial real estate firm in Atlanta announced this week that TJ Maxx and Bealls Outlet are opening up shop in the Habersham Village Shopping Center off of Highway 441. The discount retailers will rent two of the four 22,000-square-foot stores subdivided from the original Kmart space.

Vanguard Associates owns the property. Franklin Street Director Sam Krueger represented Vanguard Associates in both leases, while Senior Vice President Monetha Cobb arranged the lease for Bealls Outlet.

Bealls Outlet is expected to open this fall, and TJ Maxx plans to open in the spring of 2022. With an existing lease by Planet Fitness, Habersham Village has one junior anchor space available to accommodate a tenant between 10,000 and 18,000 square feet.

Read more from Now Habersham.

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Franklin Street Arranges Leases with TJ Maxx and Bealls Outlet at North Georgia Shopping Center

The new-to-market tenants will occupy part of a former Kmart space that was subdivided into four junior anchor units

ATLANTA (March 18, 2021) – Franklin Street, a full-service commercial real estate firm, is bringing two new major retailers, TJ Maxx and Bealls Outlet, to a shopping center in Cornelia, Georgia, approximately 85 miles northeast of Atlanta. The two leases, for 22,000 square feet each, were signed after subdividing a vacant “big box” space, previously occupied by Kmart, into four junior anchor spaces. 

The property, owned by Vanguard Associates, is a 147,182-square-foot shopping center at 201 Habersham Village Circle. At the intersection of Highway 441 and I-985, the property is situated in a major retail corridor in northeast Georgia that draws regional visitors.  

Franklin Street Director Sam Krueger represented Vanguard Associates in both leases, while Senior Vice President Monetha Cobb arranged the lease for Bealls Outlet.

Bealls Outlet is expected to open this fall and TJ Maxx plans to open in spring of 2022. With an existing lease by Planet Fitness, Habersham Village has one junior anchor space available that can accommodate a tenant between 10,000 and 18,000 square feet.

“As we continue to navigate the retail market through the pandemic, the ability to be flexible and innovative though strategies like reimagining the use of vacant big box spaces has been critical,” said Kreuger. “By subdividing this former Kmart space, we were able to bring more goods and services – and value – to Habersham Village and its surrounding community.”

Other tenants within the shopping center include Big Lots, Hibbett Sports, Anytime Fitness, Papa John’s, GNC and Burger King. Other major retailers in the area include Walmart and Lowe’s.

For more information about availabilities at Habersham Village, contact Sam Kreuger at

About Franklin Street:

Founded in 2006 during one of the toughest real estate climates, Franklin Street focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its lines of business, Franklin Street has grown to include seven business divisions – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management. With more than $5 billion in transaction value across all major product types, Franklin Street offers unmatched value and optimal solutions for clients nationwide.  Headquartered in Tampa, Fla., the company has offices in Fort Lauderdale, Jacksonville, Miami, Orlando and Atlanta. Learn more about Franklin Street at

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Jacksonville Business Journal: Multifamily development breaks ground on Jacksonville’s northside

A 270-unit multifamily development in Jacksonville’s northside broke ground March 12, according to a press release from the general contractor. 

Summit Contracting Group broke ground on The Avery at River City Marketplace, formerly known as Duval Crossing, just off of Duval Road. Corner Lot Development Group is the developer of the project, while Group 4 Design Architectural Services LLC is the architect. 

Construction is slated to be completed by summer 2022. 

Located west of I-95 and three miles from the Jacksonville International Airport, the project consists of 270 units across nine three-story buildings. The project is situated on a 13.5-acre development, and floorplans consist of one-, two- and three-bedroom units…

Corner Lot and Franklin Street announced at the beginning of February that the two had secured construction financing and equity for the project. 

Read more from Jacksonville Business Journal.

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CRE-Sources: Franklin Street Arranges $32 Million Sale Of Fort Pierce MF Community

Franklin Street has arranged the $32.2 million sale of The Sands at St. Lucie, a 320-unit apartment property in Fort Pierce.

Built in 1988, the affordable housing community is comprised of 21, two-story buildings featuring 208 two-bedroom and 112 three-bedroom units. At the time of sale, the property was 98% occupied. Amenities include an on-site fitness center, business center, clubhouse, volleyball court, pool and washer and dryer hookups in all units. All of the units currently operate under Florida’s Section 42 through January 2030, which restricts the maximum rent that is allowed to be charged and limits the amount of income the residents can make in order to qualify to live there.

Darron KattanZach AmesAvery Jordan and Mark Savarese of Franklin Street’s Tampa office represented the seller, Code Capital Partners, in the transaction. The buyer was Southport Financial, one of the largest affordable housing developers/owners in the nation.

Read more from CRE-Sources.

COVID-19 Featured News Trends

2021 Forecast: Retail Investment Market Prime for Private Capital

As COVID-19 and rising competition from e-commerce challenged the retail market in 2020, it’s no surprise that investment in retail real estate took a hit. However, while the retail market will continue to face hurdles in 2021, certain groups of buyers and sellers are well-positioned to benefit from the current environment.

Franklin Street’s retail investment sales team had a strong year in 2020 and expects the market to perform significantly better in 2021, as the retail sector rebounds. Below, two of our firm’s leading investments sales experts offer their insight and predictions for the year ahead:

Greg Matus, Senior Vice President, Investment Sales

“For owners of quality retail properties who want to access their equity, now is a great time to sell. Although buyers are continuing to proceed with caution, well-performing retail assets are in high demand due to very limited inventory in the marketplace.

We can expect retail investment sales activity to pick up significantly in the second half of 2021, as there’s a lot of capital out there causing pent-up demand.

Properties with strong streams of income are achieving cap rates just as high, if not higher, than they were pre-pandemic. This is especially true for single-tenant properties and smaller strip centers in the $1 to $5 million range.

While financing may be tricky until underwriters can see a clear end to the pandemic, private equity investors are eager to buy, creating an ideal situation for owners of these types of retail properties.”

John Tennant, Senior Director, Retail Investment Sales

“The retail sector will see continued store closures in 2021 as retailers pivot to more online sales, potentially causing vulnerable, undercapitalized tenants to close their businesses as traffic continues to decline. During the latter half of 2021, some of this vacancy will be absorbed by non-retail tenants, especially in the B and C tier centers. 

For buyers, the bottom line is that despite the current challenges facing the retail market, there are still many opportunities to acquire stable, income-producing assets – especially if you have cash in hand.

As institutional investors continue pull away from non-core assets and urban markets, where a recovery could take significantly longer, private capital investment will be the main driver in 2021. We are already seeing private equity and venture capital funds seeking to finance new retail ventures as long as the returns are commensurate with the risk.

This increased private capital activity, combined with loosening COVID restrictions, should ultimately lead to a bounce back in transaction volume over the course the year.”

Read part 1 of this blog series on the retail leasing market here.

Ask The Expert

Ask the Expert: What are the 5 Biggest Insurance Challenges for Multifamily Owners in 2021?

Franklin Street’s Insurance Director, Michael Shadeed, offers insight on the 5 biggest insurance challenges for multifamily owners in 2021. For the latest in expert insights, visit the Franklin Street Information Exchange.