Harbor East Apartments sell for $2.63 million

BUYER: R110 Inc. (principal: Spiros Zorbalas), Naples

SELLER: Harbor East Apartments LLP formerly known as The RSG Family LP-Florida

PROPERTY: 4100 Edgewood Ave., Fort Myers

PRICE: $2.63 million

PREVIOUS PRICE: $3.2 million, June 1997

LAW FIRM ON DEED: Michael A. Schroeder PL, Boca Raton

PLANS, DESCRIPTION: Naples apartment operator Spiros Zorbalas purchased the 161-unit Harbor East Apartments for $2.63 million.

The price equated to $16,304 per unit.

The transaction was done as a short sale.

The apartment complex was 55% occupied at the time of the sale. A number of those vacant units needed significant renovations before they could be rented.

Originally built in 1975, the 128,462-square-foot apartment complex features laundry facilities.

Robert and Still Hunter III and Evan Kristol of Marcus & Millichap's Fort Lauderdale office represented the receiver and Joe Crimaldi of Crimaldi & Associates LLC represented the buyer.

“The buyer of Harbor East is going to renovate and stabilize the property with the goal of growing rents over time,” says Robert Hunter. “It just had longstanding issues of deferred maintenance. Harbor East is the largest complex in the immediate area, which has been hit particularly hard in the downturn. Several of the other buildings have been bought and are in a similar situation, which should mean that entire area will be coming back soon.”

Zorbalas owns real estate properties in Minnesota, Florida, and Indiana. His past Naples projects include the condominium project Villas Avenida, townhome development Casa Bella and the five-star Hotel Escalante. He also owns a number of the units in The Reserve at Naples condominium.
The purchase entity R110 Inc. mortgaged the property to FineMark National Bank & Trust for $2.63 million.