Marcus & Millichap, a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced the sale of The Highlands, a 78-bed student housing asset in Tallahassee, Florida. The 78-bed property sold for $5,721,500.
“Given the current macro-economic environment and the impact it is having on interest rates available on new loans, the buyer was attracted to Highlands because of the opportunity to assume the Seller’s existing agency debt at a lower rate. Although agency loan assumptions typically increase the number of days it takes to close a transaction, we were able to market and close Highlands with the first buyer in a timely fashion, prior to year-end 2022” said Matthew Prozzillo. Prozzillo and Ben Skinner, senior investment specialists in the Marcus & Millichap Orlando office, had the exclusive listing to market on behalf of the seller, a privately held real estate investment fund based in south Florida. The property was purchased by an out-of-state high-net-worth individual in Minnesota.
“This transaction marks another out of state buyer entering the Tallahassee market due to the local economic fundamentals coupled with a growing and strengthening student base that exists in Tallahassee. For those reasons, the buyer was excited to close Highlands along with another student housing portfolio located west of campus, as the West of Stadium submarket has realized some of the largest upticks in occupancy and rental rates coming out of the COVID years,” added Skinner.
Built in 2017 on 2.21 acres, The Highlands apartments is comprised of four and five-bedroom townhome units ranging in size from 1,540 to 2,072 square feet. The property features luxurious amenities, including granite countertops, stainless steel appliances, vinyl plank flooring, shaker-style cabinets, private entries, a fitness center, pet stations, and a swimming pool.
Located at 1824 Greentree Lane, the townhomes are five minutes from Florida State University, Heritage Grove, Ocala Corners Shopping Mall, and Doak S. Campbell Stadium. The price equated to $73,352 per bedroom.