Covenant Capital buys apartments

BUYER: St. Petersburg Multifamily Partners LLC (Covenant Capital Group), Nashville

SELLER: Equity Residential

PROPERTY: 500 110th Ave. N., St. Petersburg

PRICE: $13.75 million

PREVIOUS PRICE: $7.27 million, August 1997

LAW FIRM ON DEED: Equity Residential, Chicago

PLANS, DESCRIPTION: Covenant Apartment Fund VI purchased the 208-unit Crosswinds Apartments in St. Petersburg for $13.1 million.

The price equated to $62,981 per unit.

The 18.5-acre property houses 13 two-story buildings. Crosswinds Apartments features two laundry facilities, a fenced pet-play area, swimming pool and separate spa area, private Jacuzzi, racquetball and tennis courts and a clubhouse with fitness facility and business center. The development was built in 1986 and 1987.

The property was 97% occupied at the time of the sale.

The fund, an investment group managed by real estate private equity firm Covenant Capital Group, financed the purchase through a $10.47 million mortgage from Freddie Mac.

The apartment complex is the 13th asset acquired by the $140 million fund.

“We saw that we could add value by rehabbing and improving the interiors, exteriors and amenities,” says Jeff Seiters, senior vice president of Covenant Capital Group. “It's a very nice asset, but it hadn't been updated since it was built. We'll begin immediately improving the exteriors and upgrade the units as they turn. It is our intention to make this an A [class] asset.”

JMG Realty will manage the property.

Covenant Capital Group's four funds own more than 20,000 apartment units, including properties in Brandon, Plantation and Jacksonville.

Cole Whitaker and Hal Warren of Hendricks & Partners represented the seller Chicago-based Equity Residential.