DAYTONA BEACH, Fla., Aug. 15, 2022 - Marcus & Millichap (NYSE: MMI) announced today the sale of Beachside Apartments, a 70-unit, three-property multifamily apartment portfolio in Daytona Beach Shores, Florida. At a combined 61,380-square-feet, the properties sold for $10.25 million or $166.99 per square foot at a trailing cap rate of 4.20%.
"During the initial launch of this deal in March, we received substantial interest from the buyer pool. However, as time went by and the Fed started significantly raising rates, the deal became more difficult to sell to an investor at our target price," said Jason Hague, first vice president of investments. "Luckily, we engaged early enough in the process with an experienced buyer who was bullish on the submarket and felt the upside potential was too good to pass up despite what was happening in the debt market during the contract period."
Hague, Ned Roberts, CCIM, Adam Podbelski, and Duane C. Anderson of the RPH Multifamily Group of Marcus & Millichap had the exclusive listing to market the property on behalf of the seller, Kashil Holdings, LLC. The Tampa-based team also procured the buyer, Daytona Ocean Breeze Apartments FL, LLC. The deal closed four months after going under contract; despite some delays with the lender.
The Beachside Apartments portfolio is aptly named for its water views and walking distance to Daytona Beach and the Atlantic Ocean. The three properties are all located just six minutes from Downtown Daytona, eight minutes from Bethune-Cookman University, and 15 minutes from Daytona International Speedway.
Patrician Apartments, located at 141-145 Boynton Blvd., is a 34-unit apartment complex consisting of three, three-story buildings built in 1959, 1970, and 1974. The property is comprised of one-, two- and three-bedroom units.
Atlantic Breeze Apartments consists of 15 units located at 100 Browning Avenue. Built in 2006, the property is a mix of two- and three-bedroom floor plans.
Cascade Apartments has 21 units, is exclusively two-bedroom floor plans, and is located at 140 Cascade Terrace. All the properties are 100% occupied and include onsite laundry facilities, washer/dryer connections, and underwent $700,000 worth of combined renovations, including new roofs, windows, entries, and exterior façade.
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Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2021, the company had 1,994 investment sales and financing professionals in 82 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 13,255 transactions in 2021, with a sales volume of approximately $84.4 billion. For additional information, please visit www.MarcusMillichap.com.
Marcus & Millichap Inc. published this content on 15 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2022 20:16:31 UTC.