Nashville firm buys Swan Lake apartments

A Nashville, Tenn.-based investment firm that specializes in buying older apartment communities and modernizing them has acquired the Swan Lake apartments in Tampa for $82.5 million.

Covenant Capital Group’s late December deal for the 640-unit complex marks its sixth purchase in Florida, according to its website.

The new owner, which acquired the 3303 N. Lakeview Drive property from Eastern Properties, intends to upgrade common-area amenities and renovate Swan Lake’s units.

“Covenant Capital seeks to acquire apartment communities at discount to replacement costs in excellent locations,” the firm’s website states. “We aim to improve the properties with a value-add strategy dedicated to focused management and renovation.”

Covenant Capital did not return telephone inquiries for comment on the purchase.

The Swan Lake community, a series of two-story multifamily rentals that were built in 1983, contains amenities such as a pair of swimming pools and dog parks, a clubhouse, fitness center, on-site laundry facilities, tennis courts, frisbee golf and a grilling area.

Units in the complex, the eighth-largest multifamily rental in the Tampa area, average 710 square feet and rent for between $760 and $1,195 monthly, according to researcher Apartments.com.

“The property remained resilient throughout the pandemic and is a prime candidate for renovation upgrades to bring it closer in line with other communities in the immediate area, which are commanding rent premiums upwards of $450 higher” than Swan Lake, says Mike Donaldson, an executive managing director at commercial real estate brokerage firm Cushman & Wakefield, who together with Nick Meoli represented Eastern Properties in the sale.

In all, Covenant Capital has completed more than 360 transactions since its formation in 2001, according to its website, deals valued in excess of $1.3 billion.