Continental Realty Corp. fund buys Sierra Grande Apartments

BUYER: Sierra Grande Apartments LLC (CRC Fund III General Partner LLC), Baltimore
SELLER: Sierra Grande Holdings LLC
PROPERTY: a portion of 6975 Sierra Club Circle, Naples
PRICE: $43 million
PREVIOUS PRICE: $5.15 million, June 2011

BUYER: Sierra Grande Condominium Units LLC (CRC Fund III General Partner LLC), Baltimore
PROPERTY: a portion of 6975 Sierra Club Circle, Naples also known units 1-101, 1-108, 1-109, 1-112, 1-209, 1-212, 1-301, 1-311 and 1-312, Sierra Grande One Condominium, Naples
PRICE: $1.22 million
LAW FIRM ON DEED: Stearns Weaver Miller Weissler Alhadeff & Sitterson PA, Miami

PLANS, DESCRIPTION:
Continental Realty Corp.'s CRC Fund III purchased the 273-unit Sierra Grande Apartments in two transactions for a combined $44.25 million.

The price equated to $162,088 per unit. That figure is higher than the two-year average price per unit for multifamily space ($62,027) in Southwest Florida, according to the CoStar Group.

Sierra Grande Apartments, located near the intersection of Collier Boulevard and Rattlesnake Hammock Road, is the only elevator-equipped apartment community in Naples. Amenities include a clubhouse, swimming pool, fitness center, tennis court and dog park.

The seller, a joint venture of The Estate Cos. and 13th Floor Investments, recently completed development of the property. Originally conceived as a condominium project, the residential market crash led the project to be reconfigured for apartments. However, one of the development's seven buildings was constructed and configured for condominiums.

The purchase marks Continental Realty Corp.'s second acquisition in Naples in the past 18 months. It purchased the 350-unit Aventine at Naples for $43.25 million in summer 2013.

“Based on our continuing research and experience in Naples over the past 18 years, our team is extremely optimistic on the long-term economic prospects,” Anne Angel, vice president of Continental Realty Corp.'s the residential division, says in a press release.

Continental Realty Corp. owns and manages more than 3 million square feet of retail center space and more than 8,000 apartment units. CRC Fund III focuses on buying value-add retail and multifamily properties in the Mid-Atlantic and Southeast regions.

The buyer, using the company names of Sierra Grande Apartments LLC and Sierra Grande Condominium Units LLC, mortgaged the property to New York Community Bank for $31.15 million.