California hearts Florida

San Francisco-based Praxis Capital Inc., a real estate private equity investment firm founded in 2001, has made a big entry into the Tampa Bay area by acquiring the Villages at Turtle Creek, a 232-unit, low-rise garden apartment complex in Lutz.

The 15-building, Class B property is 95% occupied. Praxis — which did not disclose the transaction price in a statement — sees the 11.5-acre complex as a stepping-stone for its investment ambitions in the Sunshine State. According to the news release, Praxis plans to acquire approximately 2,000 units in the central and west Florida market after spending about $3 million to upgrade the Villages at Turtle Creek, which was built in 1985 and last renovated in 2009.

PM Residential Management LLC, a wholly owned subsidiary of Praxis Capital, will manage the property.

“Similarly upgraded nearby properties are achieving $362 rent premiums over the in-place rent at Villages at Turtle Creek, making this an ideal value-add play,” says Brian Burke, president of Praxis Capital, in the news release. “We've had tremendous success employing similar strategies with properties in other states and this property holds promise for excellent cash flow with upside potential. We foresee this as a very desirable property for both our residents and investors.”

The Villages at Turtle Creek deal represents Praxis Capital's second acquisition in the third quarter of 2017. In August, it entered the Atlanta metro market by acquiring a 198-unit, Class B apartment complex in Clarkston, Ga.