PALM COAST, FL - Stoneweg US, an investment firm specializing in multifamily acquisitions and developments, announced the sale of Tuscan Reserve Apartments, the Company's first development project, located in Palm Coast, FL.
With a sales price of $32.75 million for the 123-unit community, the deal delivered an above-average 146% IRR, and equity multiple of 3.9 to its investors. Having broken ground in March 2020, Tuscan Reserve had an impressive 18-month investment cycle from the project's inception to disposition.
"This is an extraordinary win for the Stoneweg US team," said Brandon Rosser, Chief Legal Officer for Stoneweg US, who oversaw the Tuscan Reserve project. "Tuscan Reserve was managed from concept to creation and the project's success is indicative of our unwavering commitment to delivering quality deals to our investors, and our ability to weather market volatility efficiently."
Despite pandemic-related challenges, construction, led by Summit Contracting Group never halted, resulting in a January 2021 completion, roughly 100 days earlier than scheduled. The accelerated completion allowed Stoneweg US to focus efforts on an aggressive lease-up strategy, achieving 98% occupancy by April 2021 with monthly unit rental rates approximately $75 above proforma projections.
The final product at Tuscan Reserve resulted in 123 units with generous square footage, best-in-class finishes, dynamic floor plans, and energy-efficient appliances, as well as luxury external amenities inclusive of a resort-style pool with multiple grilling stations, a top-notch fitness center, bark park, and a picturesque gazebo that overlooks the property's lake and fountain.
The sale was brokered by Nick Meoli and Mike Donaldson, Executive Managing Directors for the Florida Multifamily Investment Sales Team at Cushman and Wakefield on behalf of Stoneweg US.
"We set forth an ambitious and strategic plan for Tuscan Reserve that would capitalize on the project's location; demonstrate the team's capabilities from a development and design perspective; bring quality housing to the Palm Coast Community; and deliver desirable returns to our investors," said Patrick Richard, CEO of Stoneweg US. "The execution of that plan has been flawless and a collaborative effort that we're extremely proud of."
Earlier this year, the Company announced two development deals in St. Petersburg, the Company's corporate headquarters, and the development division intends to continue growing the pipeline with a specific focus on Florida markets poised for growth. Both development projects are expected to kick off in early 2022.