Franklin Street arranged the sale and secured financing for Sunset Apartments, a 54-unit rental community in Sunrise, Florida. Franklin Street’s Tony Gannacone, Greg Matus and Dan Dratch represented both parties in the transaction.
The three-building complex, located in western Broward County, had been owned by two Canadian investors under the corporate entity RonJack Properties, LP. Franklin Street was hired to sell it, but after arranging a potential deal, one of the two investors decided to buy out his partner for an undisclosed amount and own the property outright.
Franklin Street’s Capital Advisors division obtained the 10-year nonrecourse loan with a 3.5 percent fixed rate of interest on behalf of the buyer. Franklin Street’s Evan Seacat and Ryan Cassidy provided insurance services for the asset.
“Once we secured an offer, one of the partners decided to stay in the deal,” said Gannacone, an Investment Sales Associate in Franklin Street’s Fort Lauderdale office. “He remained convinced there was still a lot of room for rent growth and opportunity for the property to appreciate. He took advantage of the low interest rate environment and lower insurance costs that we were able to provide to increase margins and cash flow.”
“Franklin Street not only helped me find less expensive insurance, but also its investment sales and capital markets teams sourced the financing that I used to buy the property,” said a spokesperson for RonJack Properties. “They have positioned themselves as a true real estate solution for investors.”
RonJack originally purchased the apartments three years ago. They made significant capital improvements to bring the property up to date, including new roofs, new air conditioners, a resurfaced parking lot and kitchen remodels.
“The property has great upside potential based on the recent unit and amenity upgrades,” said Gannacone. “I think value-add multifamily assets, like Sunset, will benefit the most as the Broward County market continues to grow.”