Built in 1974, the Gateway on 4th Apartments in St. Petersburg, Florida, has consistently maintained strong occupancy despite its age.
That occupancy, along with the property’s location in one of Florida’s fastest-growing metros, was an attraction to the most recent buyer, according to Berkadia Managing Director Brad Williamson.
Florida’s Business Observer identified ResProp Management as the purchaser of the 304-unit property. The Austin, Texas-based firm acquired the asset from a South Florida investor for $37 million on June 30.
“They [the buyer] owned and operated a lot of similar properties on the west coast of Florida,” Williamson said. “They like the location and felt it was a good addition to their portfolio.”
Williamson, who financed the property the last two times it was sold, attributes the asset’s performance to strong management.
“We've worked with both the seller and we've worked with the buyer,” Williamson said. “Both groups have strong track records in property management.”
Berkadia originated a Freddie Mac-backed $33.3 million fixed-rate loan with a five-year term and three years of interest-only payments. Williamson, Berkadia Associate Director Wes Moczul, Senior Managing Director Mitch Sinberg and Managing Directors Scott Wadler and Matt Robbins of Berkadia Miami and Boca Raton arranged the financing.
“We're seeing an appetite from lenders, debt, funds, banks and life companies, but Freddie and Fannie have been by far the cheapest cost of capital in the market,” Williamson said. “When you run a process, it typically stands out as the best option.”
Gateway on 4th Apartments consists of 32 two-story apartment buildings on a 15-acre site offering a mix of one-, two- and three-bedroom apartments ranging from 618 square feet to 1,498 square feet. The property’s amenities include a swimming pool with sundeck, 24-hour fitness center, bark park, dog wash station, outdoor kitchen with picnic seating, firepit area, jogging trail and children's playground.
“The property has been well kept, and there were limited to no deferred payments,” Williamson said.
The buyer plans several in-unit renovations, including adding washers and dryers, installing new appliances and replacing floors and fixtures as needed.
“With any older property, there's always an opportunity to do upgrades,” Williamson said.
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