By John Hielscher, Staff Writer, Sarasota Herald Tribune, Posted January 27, 2020
It marks one of the highest multi-family prices in recent years.
A real estate investor paid $73 million last week for a newly opened apartment complex in south Manatee County.
The 324-unit Oasis at Sarasota was acquired by The Praedium Group, a privately held real estate investment firm in New York City.
It marks one of the highest prices recently paid in the Sarasota-Manatee multi-family property market, which has attracted investor dollars from across the country drawn by rising demand and escalating rental rates.
Opened in mid-2019, the Oasis at Sarasota contains 12 three-story garden style buildings with a mix of one-, two-, and three-bedroom units ranging from 802 square feet to 1,319 square feet. Rents were set at $1,240 to $1,920 per month when it opened.
The 26-acre property, at 2800 Telluride Loop just north of University Parkway and east of U.S. 301, sits in an area that has boomed with residential and commercial growth.
“Further, there appears to be a migration occurring within Sarasota, with tenants moving from downtown Sarasota to its suburbs, in order to escape the increased congestion,” said Chris Hughes, a principal of Praedium.
Unit interiors have nine-foot ceilings with crown molding and granite countertops. Community amenities include a clubhouse, dog park and a beach-entry swimming pool.
The property was developed and sold by the Picerne Real Estate Group of Altamonte Springs, Illinois. Last year Picerne paid $4.06 million for 11 acres where it is building a 254-unit rental community called Oasis at Lakewood Ranch. The property is at the southeast corner of Lorraine Road and 59th Avenue East, next to the site of a future Publix store.
The Sarasota-Manatee region has seen a surge in new rental multi-family construction in recent years. In and around downtown Sarasota, for example, more than 1,800 apartment residences have been added in the past three years.
And existing communities have been hot sellers. Last month an out-of-state investment company paid $42.1 million for The Lexington Apartment Homes, a 267-unit, garden-style community on Beneva Road in Sarasota. In October the 270-unit Eden Pointe Apartments in Bradenton sold for $30.75 million to a Massachusetts company, and a month earlier the 252-unit Preserve at Riverwalk fetched $46.4 million from an investor in Indiana.
Locally, other big sales in the last two years include $43 million for the 224-unit Summer Cove apartments in southern Manatee; $110.5 million for the 900-unit Carlton Arms of Bradenton; $76.1 million for the 360-unit Echo Lake apartments in Lakewood Ranch; $70.5 million for the 392-unit Yacht Club at Heritage Harbor; and $70.5 million for the 172-unit Tuscany Apartments in Sarasota.
Praedium says that since 1991 it has completed over 370 transactions representing $12 billion of capital. It has sponsored a series of 10 private equity funds, along with several separate investment vehicles.