Marcus & Millichap, a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced the sale of Lodge 2765, in Tallahassee, Florida.
Built in 1973, Lodge 2765 comprises 59 rental units across a one-building, two-story structure. It houses a unit mix of one- and two-bedroom floor plans ranging from 600 to 880 square feet.
At the time of the sale, Lodge 2765 had an economic vacancy rate of 31% and a physical vacancy rate of 20%. The spread between the economic and physical vacancy rates was due to the property undergoing renovations, an initiative the buyers, Quantum Capital, plan to improve upon under their ownership. Common area amenities include a swimming pool, laundry facility, pet park, fitness center, and an on-site leasing office.
“The principals at Quantum were attracted to Lodge 2765 due to the property’s need for further interior renovations and operational efficiencies. Aside from those strategies, Quantum also plans to improve upon the existing amenity set, which together present the opportunity to reduce the economic vacancy rate while increasing the asset’s revenue potential,” said Ben Skinner, vice president of investments.
“As their first investment in the Tallahassee market, Quantum saw Lodge 2765 as a well-sized entry point for them to enter Tallahassee, a market that has recently seen large-scale capital investments in higher education, state-of-the-art research, and connectivity through airport expansion and improvement projects. Ultimately, this sale allows Quantum to establish operational efficiencies that can be leveraged into future portfolio growth,” added Matt Prozzillo, senior associate.
“We were able to successfully market this value-add opportunity and received multiple offers from investors around the country in this challenging market” says Allan Holbrook, senior associate.
Holbrook, Skinner, and Prozzillo, investment specialists in Marcus & Millichap’s Orlando and Jacksonville offices, had the exclusive listing to market the property, and represented the Buyer and Seller through the transaction.
Marcus & Millichap, Inc. (NYSE: MMI) is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion.
