Investor pays $70.5 million for Sarasota apartments

The Reserve at Palmer Ranch has sold.

The 320-unit Sarasota County apartment complex was bought by MLG Capital which, according to county property records, paid $70.5 million.

The garden-style property is located at 4110 Winners Circle, just off of McIntosh Road. It was built in 1990 and includes single and two-story buildings of which 67% are two- and three-bedroom apartment homes.

Details of the property were provided by Berkadia which arranged the sale and the acquisition financing. But just how much of the $70.5 million sale price it set up is not clear. The company did not disclose the amount, nor did it respond to a request for comment. What it did say is that it’s a 10-year, fixed rate loan through Freddie Mac.

The seller was California-based Strategic Holdings. County property records show it paid $57.6 million for the complex in 2021.

Units at Reserve at Palmer Range from an 840-square-foot one bedroom starting at $1,635 per month to an 1,125-square-foot three bedroom topping out at $2,881 per month.

This is Wisconsin-based MLG Capital’s third Florida complex. According to its website, the other two are in Clearwater and Gainesville. In all, it currently owns more than 37,100 units totaling 4.36 million square feet in 20 states.

The sale price may be a sign that the multifamily market is changing. Just about 14 months ago, in April of 2022, a nearby apartment community sold for $121.5 million. That property was the 257-unit Sage on Palmer Ranch, which is about five miles away at 12501 Honore Ave.

The buyer was LaSalle Investment Management out Chicago. Shortly after buying Sage, the company paid $166 million for the 336-unit Bainbridge Palmoré complex on Cattleman Road.