Thursday, January 6, 2011

Marcus & Millichap Sells 201-Unit Apartment Building in St. Petersburg, FL

ST. PETERSBURG, FL, Jan.6, 2011 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Spring Lake Village and Edgewater Apartments, a 201-unit apartment property located in St. Petersburg, Fla, according to Bryn D. Merrey, Regional Manager of the firm’s Tampa office.

The asset sold for an undisclosed price.

Michael P. Regan (top right photo), an associate vice president investments, Francesco P. Carriera (top left photo), a senior associate and Nicholas Meoli (middle right photo), a multifamily investment specialist all based in the Tampa office, represented the buyer, a private investor based out of Florida. 

Spring Lake Village and Edgewater Apartments is located at 6401 31st Street South. 

“Despite several issues that arose during the due diligence period, we closed the deal at the contract price.  It was a great deal for both parties.  There is a lot of money chasing deals in today’s market and with our buyer pool, we don’t have enough product to sell” says Carriera.

 Hidden River Grande Apartments in Tampa, FL Sells for $4 Million

TAMPA, FL, Jan. 6, 2011 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Hidden River Grande (middle left photo), a 220-unit apartment property located in Tampa, Fla, according to Bryn D. Merrey, Regional Manager of the firm’s Tampa office.

The asset commanded a sales price of $4,075,000.

Michael P. Regan, an associate vice president investments and Francesco P. Carriera, a senior associate both based in the Tampa office, had worked on behalf of the buyer, a private investor based out of South Florida.

 “Hidden River Grande exemplifies an ‘add value asset’.  There were 91 down units with 61 of them needing significant rehab work.  We have seen a tremendous amount of interest in this quality of an asset, attracting both long and short term owners,” commented Regan.

Hidden River Grande is located at 8024 Hidden River Grande. 

Press Contact: Bryn D. Merrey, (813) 387-4700

Marcus & Millichap Sells 44-Unit Apartment Building in DeLand, FL

DELAND, FL– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Penn Oaks, a 44-unit apartment property located in DeLand, Fla, according to Bryn D. Merrey, Regional Manager of the firm’s Tampa office.

 The asset commanded a sales price of $578,000.

Michael Donaldson (top right photo), a multifamily investment specialist in Marcus & Millichap’s Tampa office represented the buyer, a Florida based private investor who purchased the asset from a financial institution based out of Delaware. 

Penn Oaks was built in 1974 and is located at 315 West Pennsylvania Avenue. The property consisted of a majority of two-bedroom units and was recently foreclosed on by the first mortgage holder.

“This transaction represented an excellent opportunity for a local apartment owner with a large presence in the area to capitalize on an asset that had dwindling operations, due to the recent foreclosure”, said Donaldson.

 “With close proximity to Stetson University and downtown DeLand, this is an ideally located property that can be stabilized to market occupancy levels, through hands-on management and completion of necessary renovations” added Donaldson.

 Manufactured Home Communities in Hudson, FL sold for $800,000

HUDSON, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Old Dixie Highway RV (middle left photo), a manufactured home communities property on 2.26 acres, located in Hudson, Fla, according to Bryn D. Merrey, Regional Manager of the firm’s Tampa office. The asset commanded the full offering price of $800,000.

Benjamin Roddey (middle right photo), a manufactured housing and RV communities’ specialist in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the Florida-based seller, a limited liability company.

 The buyer, a limited liability company out of Key West, Florida, was secured and represented by Luis Baez (lower left photo), an investment specialist in the firm’s Tampa office. 

 Old Dixie Highway RV is located at 13914 Old Dixie Highway.  This is an all-age, park-owned rental community originally developed around 1963. The community is situated approximately five minutes from State Road 52 and is within walking distance to beautiful Hudson Beach.

“This property was a turnkey operation and closed at a +15 percent capitalization rate, with cash flow returns in the high teens upon title transfer” said Baez.

Press Contact: Bryn D. Merrey, Regional Manager, Tampa, (813) 387-4700

Atlanta’s Senior Housing Specialist Arbor Company Makes Changes and Turns Itself Around

TAMPA, FL -- CLW Health Care Services Group, headed by Allen McMurtry (top right photo), will be highlighting turnaround stories of Senior Housing communities over the next few issues. The Arbor Company of Atlanta, GA is featured today.


• 60-unit purpose built Assisted Living/Memory Care (46 AL/14 MC)
• Middle-income suburb of major southeastern city
• Built in the mid-1990s
• Prior manager was a large, nationally recognized Assisted Living provider


What made the turnaround work after The Arbor Company took over?:

1.            Changing the name to one used for other Arbor-managed communities in the area, whereby quickly gaining credibility in the market place.  The other communities were well established and successful.

2.         Hiring an experienced Executive Director, whom Arbor knew.  He was then made the leader of the detailed takeover plan.
3.         Hiring an experienced Marketing Director, who could hit the ground running.
4.            Planning and quickly implementing a $150,000 refurbishment of the common areas, with specific attention paid to Memory Care. Upgrading the common areas immediately and making some small improvements in the apartments as they turned over allowed management to start improving rental revenue. 
5.            Working diligently to get a customer service “culture” established. Using an organized communication program, Arbor moved quickly to convey to the residents, families, and staff that the community was having a new beginning.
6.            Completing a thorough analysis of rent levels and level of care charges as compared to the competition. Arbor then implemented appropriate new street rates in order to increase revenue and occupancy as quickly as possible. This also allowed Arbor to begin selective rent discounting on apartments that were more difficult to lease.
7.            Configuring and leasing some apartments as roommate suites (two people per apartment), which gradually increased revenue per occupied apartment and thus improved the bottom line. This strategy was particularly effective with Memory Care apartments. 
8.            Moving to eliminate the perception of leadership instability in the community by hosting group and individual meetings with families and community leaders. 

  (Arbor residence at Crabapple Road, Alpharetta, GA, middle right photo)

Greatest weakness:

The greatest weakness found in the community – and directly reflected in its low occupancy -- was a lack of the leadership and team spirit that is required to make a community successful.

Arbor worked diligently to encourage employees to actively participate in crafting new service and personnel standards that would reflect “The Arbor Way.” With ownership in the new plan, employees embraced the changes and rapid improvements in all areas of operations, including occupancy, soon resulted.

(Arbor residence in Athens, GA, middle left photo)

Main challenges:

Resident Assessment & Level of Care Programs:  The introduction of the Arbor resident assessment and levels of care program to residents, families and staff was challenging.

 This Arbor-developed program was instituted early on and, not surprisingly, was met with some resistance.  Arbor had to “sell” themselves and the care program they provided. Fortunately, with a lot of hard work in this area, they were able to get a 30% increase in LOC fees in the first year after they took over.

Staffing expenses: Labor costs were extremely high when Arbor arrived, with overtime being a major factor.

Arbor worked diligently to establish better controls to bring labor expenses back in line and, after about three months, they were able to accomplish that goal.
Personnel changes:  

As Arbor became involved in day-to-day operations they concluded they needed to replace some department heads.  It took about 6 months to get a great leadership team in place.

Dining operations:  Arbor quickly made some major changes in the menus and in dining service, which paid significant dividends in a short period of time.

Favorable response to the dining changes by residents and families greatly helped Arbor’s credibility as it made other necessary operational adjustments.

The old saying “If the food isn’t right, nothing is right” once again proved to be true.

Year   Occup      Revenue              NOI   Operating Margin
2007   n/a           $2,799,170            $440,854     16%
2008   78%         $2,776,889            $653,955     24%
2009   95%         $3,100,488            $872,092     28%
2010   95%         $3,328,985            $956,034     29%

Notes:  2010 data is annualized through October
Arbor assumed management in February 2008 

The Arbor Company

The Arbor Company, based in Atlanta, Georgia, has been in the senior living management business for over 20 years.  They currently manage 15 communities, containing 1,298 units, in 7 states.

For more information on the services Arbor provides, please contact M.E. Costello or Ellison Thomas at 404.237.4026 and visit them on the web at


• Sedgebrook & Monarch Landing (Entrance Fee CCRCs - 963 total units) located in Lincolnshire & Naperville, Illinois
• $13.9 million sale of AvonLea & Gulf Breeze Courtyard located in Tupelo, Mississippi & Gulf Breeze, Florida
• $9.5 million sale of Summerfield Retirement Residence located in Bradenton, Florida

Allen McMurtry, CLW Health Care Services Group, 4301 Anchor Plaza Parkway, Suite 400Tampa, FL 33634. PH:  (813)-349-8349

Essex Realty Group Brokers Sale of Multiple Apartment Buildings in Chicago

CHICAGO, IL --.   Essex Realty Group, Inc. is pleased to announce the sale of multiple apartment buildings on the South Side of Chicago.  2304, 2310 & 2320 W. Garfield (top left photo) is located in the Gage Park neighborhood of Chicago.

The property consists of 3 separate buildings: 2 6-unit walk-ups and one 18-unit courtyard building.

12837, 12841 & 12845 S. Hoyne (lower right photo)  is located in the Blue Island neighborhood of Chicago and consists of an 18-unit building with 3 one-bedroom and 15 two-bedrooms apartments.

Doug Imber and Matt Welke of Essex were the brokers in the transaction. The sale price for Garfield was approximately $690,000. The sales price for Hoyne was approximately $475,000.

Essex Realty Group, Inc. specializes in the sale of investment real estate throughout the Chicago metropolitan area.
If you would like more information, please call Doug Imber at 773.305.4902 or e-mail him at