As institutional buyers sit mainly on the sidelines waiting for cap rates to fall, private multifamily investors with money have found an opening in the acquisition markets.

One of those companies taking advantage of the market is Buffalo, New York-based Sinatra & Co., which owns $750 million in real estate assets consisting of over 4,500 multifamily units in upstate New York, Illinois and Florida. 

“We have seen this as an opportunity to buy without others driving pricing up,” CEO Nick Sinatra told Multifamily Dive. “Cap rates have risen, and acquisition prices have gotten below replacement pricing, so that’s a good buying opportunity in our view.”

Earlier this month, Sinatra & Co. acquired its first multifamily asset in Cocoa, Florida, securing the Cocoa Grand Apartments for $64.3 million. 

“The Cocoa submarket is in the heart of Florida’s Space Coast,” Sinatra said. “Cocoa Grand is workforce housing at its finest. The job prospects there now are great, with a tremendous outlook for the future with drivers from the service industry, the Space Force base and all the auxiliary businesses.”

The Cocoa Grand Apartments is the firm’s fifth asset in Florida. “We have been in Florida now for almost four years,” Sinatra said. “We love the business-friendly climate statewide and the growth prospects in central Florida both on the population trends and the job growth.”

Small improvements

Sinatra plans minor upgrades at the Cocoa Grand Apartments, including enhancing the amenity package, screening in the balconies on the property and adding a decorative access gate.

“As the property was recently completed, our plans for the property will be cosmetic in nature to improve the customer experience,” Sinatra said.

Property management activities will remain on-site, while regional operations will be centrally coordinated from Sinatra & Co.’s Tampa headquarters. 

Sinatra financed the acquisition through its SCRE FL Value Add Fund along with Stolar Capital and The Nanula Family Office. Citi Bank was the debt provider. Berkadia handled the sale and financing of Cocoa Grand.  

“The rates are what they are, but we did have about a half dozen very interested lenders who liked the property, the location and us as the sponsor,” Sinatra said. “So we were able to choose the best option for us and our fund.”

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