Lat’s Development, Inc., sold Saulstars Court, a 54-unit multifamily complex located at 3400 Tyne Lane in Sarasota, for $5.1 million. The buyer, The Gables at Honore, LLC, paid more than 10 percent above the asking price, which was $4.6 million.
Sean Dreznin and George Kruse of Ian Black Real Estate handled the transaction.
“We fielded more than 10 written offers in the first two weeks from individual and institutional buyers,” said Kruse, investment sales associate at Ian Black Real Estate. “This property hit a sweet spot in the market due to its middle-market size of between 10 and 100 units and its price point.”
The Class B property consists of 27 duplex buildings, totaling 59,800 square feet, on 6.5 acres. At the time of sale, occupancy was steady, in the low-to-mid 90 percent, with some units held back for renovation.
Ian Black Real Estate took the property to market on behalf of four siblings from Canada who had inherited the property four years ago from their father, who had built and owned the complex since 1993. The buyers are local, active investors in the multifamily sector.
“While the buyers typically focus their attention on larger opportunities, the uniqueness of the duplex-style layout, the upside opportunity for rents and its proximity to other complexes in their portfolio made this an attractive purchase,” said Dreznin.
This sale is indicative of a notable trend in the Sarasota multifamily market, according to Dreznin and Kruse.
“While the focus has been on the supply of new construction in the market, the other side of the multifamily investment market is re-sales,” said Kruse. “We are seeing a severe lack of inventory in the middle-market apartment space. This is driving more interest to any opportunity that comes to market and further increasing the prices buyers are willing to pay due to the lack of alternative options.”
About Ian Black Real Estate:
Ian Black Real Estate (IBRE) is a boutique commercial real estate brokerage firm located in Sarasota, Fla. The firm is one of the largest commercial brokerage firms in Southwest Florida and boasts a deep knowledge of the commercial real estate market in Sarasota and Manatee counties and the surrounding area. For more information, visit ian-black.com.
Noelle Fox, APR
True Blue Communications
Cell: (813) 857-2949