PETERSBURG, FL – Admiral Capital Group and ESG Kullen announced the sale of Trellis at the Lakes, a 688-unit apartment building in St. Petersburg, Florida, in Tampa, MSA.
Admiral and ESG acquired the apartment community in September 2016 through a joint venture for USD 80.9 million. The investment offered the opportunity to acquire a well-located asset at a discount on replacement costs and provide an alternative to growing staff for the growing workforce in one of the major emerging markets in the US. The asset sold for $ 114 million, an increase of over 40% in value.
During its tenure, the joint venture wanted to improve the aesthetics and overall experience for tenants. The partnership renamed the property and repositioned it through exterior improvements, fixing the delayed maintenance and upgrading the interiors. Improvements included the construction of a new state-of-the-art fitness center, improvements to the pool area, new outdoor kitchens, other improvements to the equipment and landscaping throughout the property. Interior renovations included modernizing the countertops, upgrading the kitchens with new cabinets, appliances, floors and bathrooms. The upgrades and improvements improved what's on offer for prospective tenants and provided a high quality, affordable alternative to newer assets nearby with higher total rents.
"Identifying undercapitalized assets in markets with an imbalance between supply and demand has been a critical part of our growth and success in the multi-family space," said Dan Bassichis, co-founder of Admiral. "Tampa, with its solid fundamentals and accelerating employment and population growth, was a key market for Admiral and this property was ideal for executing our value-adding investment strategy. We couldn't be happier with ESG Kullen." . "
Trellis is Admiral's second capital in Tampa. Nationally, Admiral has acquired over 12,800 apartment buildings, 1.8 million square feet of office space, 790,000 square feet of retail space and 900 hotel keys. Trellis at the Lakes was Admiral's first of two acquisitions with ESG Kullen. Admiral also partnered with ESG to purchase a broken condo in Orlando.
"The trellis sale is particularly exciting for us as it confirms our Florida repositioning thesis that focuses on design, value, sustainability and engagement," said Eric Granowsky, Principal of ESG Kullen. "We are still seeing an oversized performance in Central Florida as population growth, projected employment growth, and supply and demand fundamentals continue to support strong multi-family absorption. We look forward to repeating that success with Admiral and its commitment to community empowerment to share across the country. "
Source: Admiral Capital Group