Cushman & Wakefield has arranged the sale of The Lexington Apartment Homes, a 267-unit multifamily community in Sarasota, for $42.1 million, or $157,711 per unit. With below-average rental rates currently in place, the garden-style asset presents a significant value-add opportunity.
Executive Director Nick Meoli and Executive Director Mike Donaldson, with Cushman & Wakefield’s Florida Multifamily Investment Sales Team, represented Forest Properties, a Boston-based property management and asset-repositioning firm, in the sale. The buyer is Laguna Point Properties, a California investment company that specializes in value-add opportunities in the southeastern and western United States.
At 3510 Cheshire Square, The Lexington is centrally located between Interstate 75 and U.S. 301, providing excellent accessibility along Florida’s west coast. The location is also convenient to Sarasota’s vibrant downtown and award-winning beaches.
Residences range from one- to four-bedroom units and average 1,040 square feet. The average market rent is $1,315. The property was developed in 1974, and select units have recently been updated with stainless steel appliances and vinyl plank flooring throughout.
Onsite amenities include two swimming pools, a fully renovated fitness center, tennis court, clubhouse with resident lounge, pet park and on-site laundry facility. All units have private balconies and patios, and many have lake views.
“The Lexington was a rare value-add opportunity to acquire a 267-unit, 1974-built asset in Sarasota,” said Meoli. “The property is located minutes from downtown Sarasota with limited competing properties in the submarket and some of the lowest rents in the immediate area, allowing the buyer to renovate interior units and increase effective gross revenue by nearly 22 percent.”
Added Donaldson, “The highly sought-after central Sarasota submarket has a historically high barrier to entry for value-add opportunities, which adds to the significance of this sale. Within the last five years, just one other pre-2000s built asset with over 100 units has traded in the area.”
Cushman & Wakefield’s Florida Multifamily Team is directed by Robert Given and includes Donaldson and Meoli as well as Luis Elorza and Brad Capas in West-Central Florida; Jay Ballard and Ken Delvillar in Central Florida; and Zachary Sackley, Troy Ballard, Calum Weaver, Errol Blumer, Neal Victor, James Quinn and Perry Synanidis in South Florida. Robert Kaplan, Chris Lentz and Mark Rutherford facilitate debt, equity and structured finance for the team throughout Florida.