Blue Rock Partners, Konover South buy two adjacent Brandon apartments

BUYER: Plantation Providence LLC, Tampa
SELLER: Plantation Key Associates
PROPERTY: 1918 Plantation Key Circle, Brandon
PRICE: $41.33 million
PREVIOUS PRICE: $1.6 million, April 1991

SELLER: Brandon Park Associates
PROPERTY: 401 Providence Road, Brandon
PRICE: $15.68 million
PREVIOUS PRICE: $1.15 million, April 1988
LAW FIRM ON DEED: Shumaker Loop & Kendrick LLP, Tampa

PLANS, DESCRIPTION: Tampa-based Blue Rock Partners LLC and Deerfield Beach-based Konover South LLC purchased the 712-unit Plantation Key Apartments and adjacent 270-unit Providence Park Apartments for $57 million.

The price equated to $58,045 per unit.

The two apartment complexes are being rebranded together as the Park at Siena. The combined development features a fitness center, three pools with cabanas, a playground, coffee bar, business center and tennis court. The properties had an average occupancy of 88% to 90% prior to the sale, which is slightly below the market average of the mid-90s.

Going forward Blue Rock Partners is expected to be the more hands-on partner while Konover South's involvement was described as primarily financial.

“We currently own 1,000 units in that submarket already,” says Randy Ferreira, principal/owner of Blue Rock Partners. “We saw it as an opportunity to upgrade our current portfolio. It's probably a C+ or B- property that we plan to bring up to an A in the market. We are confident in our ability to [improve the property and] raise rents.”

The new ownership plans to invest $6 million on the properties improving them and bringing them under the Blue Rock Partners brand. The apartment developments will be painted in a different color scheme, the landscaping will be improved, fountains and new amenities will be added and the entire complex will be gated. The new owners plan to upgrade the units, installing new flooring, cabinetry and ceilings fans.

The exterior improvements are scheduled to take six months to a year to complete with the interior unit additions following behind at between 18 to 24 months for completion.

The two Brandon apartments were purchased at the same time the joint venture purchased the 236-unit Martin's Landing Apartments in Lakeland. It has similar upgrades planned for that property.

“We are looking forward to future acquisitions in the Tampa and Orlando markets,” Ferreira says. “There are still quite a few opportunities in both markets.”

The partnership became more aggressive in buying apartment properties starting in 2009 when Konover South, an affiliate of The Simon Konover Co. of West Hartford, Conn., acquired a stake in Blue Rock Partners. Soon afterward, the partnership acquired the 390-unit Park at Dorchester and 204-unit Park at Knightsbridge, both in Brandon. In late 2011, the partners acquired an additional 1,086 Tampa Bay units. Recently, it purchased the 244-unit Palm Grove Apartment Homes in Tampa, which has been rebranded and marketed as the Park at Chesterfield. The partnership also purchased and rebranded four Orlando-area communities including the 344-unit Park at Cambridge, 288-unit Park at Sutton Place, 208-unit Park at Sorrento and 168-unit Park at Canterbury.

Marcus & Millichap National Multi-Housing Group, Tampa handled the sale.