Marcus & Millichap, a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of a two-property, 384-unit multifamily portfolio in Daytona Beach, Florida. The properties are Lake Forest Apartments, a 240-unit multifamily property built in 1987 that sold for $23.55 million, and Jade Park, a 144-unit multifamily asset that sold for $13.45 million. Michael Donaldson and Nicholas Meoli, each senior vice president investments, represented the seller and procured the buyer.
“This offering brought significant interest from the marketplace, attributable to recent property renovations, additional upside in repositioning the communities, and strong economic momentum taking place in the Daytona Beach market,” says Donaldson, located in Marcus & Millichap’s Tampa office. “Building upon the recent property enhancements by the seller, the buyer can continue renovating the units, merging the two communities as one and infusing additional capital into the curb appeal and common area amenities.”
“Having sold most of the multifamily transactions in the Daytona Beach area over the last few years, we have seen an uptick in demand,” adds Meoli. “While renters are attracted to the low cost of living in an affordable coastal market, buyers see opportunity to acquire rental communities with recent outsized rent growth in an expanding market at prices well below replacement cost.”
Located side by side in a wooded lakeside setting, the communities are near the Daytona International Speedway, the Volusia Square Mall, the One Daytona project and the Daytona Beach international airport. The “World’s Most Famous Beach” is minutes away. Both properties have received renovations to most of the unit interiors and exterior upgrades, including fresh paint and clubhouse improvements.
About Marcus & Millichap
With over 1,800 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed nearly 9,000 transactions in 2017 with a value of approximately $42.2 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors.