Source: Fifteen Group / #Multifamily #Apartments
MIAMI, FL - Fifteen Group has recently completed the sale of Meadow Brook Preserve, a 268-unit apartment community in Naples, Florida for $22 million. Built in 1997 as Turtle Creek Apartments and financed by the original developer under the Low-Income Housing Tax Credit (LIHTC) program, the property was acquired by Fifteen Group in October of 2010 from the Florida Housing Finance Corporation, which had taken title to the property via foreclosure.
Since acquiring the property for $12MM in an all-cash transaction, Fifteen Group installed new management and implemented a value-add program consisting of extensive exterior and common area renovations as well as individual unit upgrades, allowing for rent increases while simultaneously increasing occupancy from roughly 50% at takeover to over 90%. Occupancy was stabilized within 15 months of ownership – well ahead of the two years that had been budgeted. Fifteen Group successfully repositioned the asset, rebranding a distressed tax credit foreclosure as Meadow Brook Preserve, the premier market-rate rental community in its submarket. The property was named Most Improved Community of the Year for 2011 by the Southwest Florida Apartment Association.
“The successful execution of our business plan is a tribute to our asset management team,” said Fifteen Group Co-Founder and Principal Ian Sanders. “Hands-on asset management has always been a crucial component of our overall investment platform and nowhere is this more apparent than with Meadow Brook Preserve. Our team made all the necessary macro and micro-level decisions in order to complete the property’s turnaround and realize our investment as quickly and efficiently as possible.”
Fifteen Group is a family-owned real estate investment firm based in Miami, Florida. Fifteen Group's investment activities are opportunity-driven, value-added acquisition and development projects. Historically, Fifteen Group concentrated primarily on the multifamily sector, but has evolved to include expertise in the office, retail, mixed-use, industrial, and land development sectors. Currently the firm invests in all major real estate asset classes, and in real estate secured debt. Fifteen Group also maintains an office in Los Angeles.