Covenant Capital Group Acquired Waterleaf Townhomes & Apartments in Port St. Lucie from Investors Management Group
PORT ST. LUCIE, FL (April 6, 2021) – Franklin Street has arranged the sale of Waterleaf Townhomes & Apartments, a 230-unit multifamily rental property in Port St. Lucie. Nashville-based Covenant Capital Group, a real estate private equity firm, acquired the asset for $41.55 million, or $180,652 per unit.
Franklin Street’s Tampa-based multifamily investment sales team of Darron Kattan, Zach Ames, Avery Jordan, and Mark Savarese arranged the transaction on behalf of the seller, Investors Management Group, Inc. (IMG).
IMG acquired the property in 2017 for $26.75 million and implemented a multimillion-dollar capital improvement program that involved renovating unit interiors as well as common areas and amenities. Renovated units have been attracting monthly rental rate premiums averaging $200. Covenant Capital Group plans to continue value-add improvements throughout the community.
“This asset commanded over 20 qualified offers in a non-core market, demonstrating the continued strength of Florida’s multifamily investment sales market, especially when it comes to value-add opportunities,” said Kattan. “With IMG’s recent renovations, Waterleaf Townhomes & Apartments is now competitive with newer rental communities in the surrounding area, giving Covenant Capital a solid foundation as they make additional revenue-growing improvements.”
Waterleaf Townhomes & Apartments is situated on nearly 22 acres at 1942 SE Hillmoor Drive in Port St. Lucie, a city on Florida’s East Coast known for its award-winning PGA Village golf resort, hosting the New York Mets’ spring training camp and proximity to award-winning beaches. Further, the apartment community sits right across the street from the 56-acre Woodstork Trail and Hillmoor Lake Park, where residents can enjoy shore-line fishing and walking / biking trails.
The property consists of 35 buildings, built in two phases between 1990 and 1994. Units range from 1,150 to 1,214 square feet, each with three bedrooms and either two or 2.5 bathrooms. Amenities include two sparkling pools, a brand-new 24/7 state-of-the-art fitness center, a dog park, sand volleyball courts, a playground, and a play court with rentable outdoor games. The property was 98% occupied at the time of sale.
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 FranklinSt.com.