August 1, 2016
CRC Acquires 252-Unit Polo Glen Apartment Community in Rockledge, FL for $38M
Built in 2008, Polo Glen is situated near cities such as Cocoa Beach, Melbourne and Viera and features units averaging 1,200 square feet.
Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company, has acquired Polo Glen Apartments, a residential community consisting of 252 garden-style apartment units in Rockledge, Florida near the areas of Viera, Melbourne and Cocoa Beach in Brevard County for $38 million. The asset was purchased from The Bainbridge Companies, who was represented by Patrick Dufour, Scott Ramey, Kevin Judd and Ryan Crowley of Apartment Realty Advisors of Florida, LLC.
The apartment community, located at 3603 Middleburg Lane, was acquired on behalf of Continental Realty Fund IV, L.P., a $164 million fund focused on acquiring value-add retail and multifamily properties in the Mid-Atlantic and Southeast regions. This represents the third property and second residential asset purchased by the Fund, which includes Avana at Carolina Point, a 346-unit apartment community in Greenville, South Carolina that was acquired last year.
“Polo Glen Apartments offers compelling advantages led by a strategic location along the Space Coast section of Florida, and outstanding physical attributes including numerous high-end unit features,” stated J.M. Schapiro, Chief Executive Officer of Continental Realty Corporation. “The asset satisfied each value-add criteria in our evaluation and analysis methodology, including its position midway between the region’s largest residential demand drivers in Port Canaveral and the Melbourne-Palm Bay sub-markets. We envision the achievement of long-term value with this asset with the investment of resources to upgrade the units and the community amenities.”
Constructed in 2008, more than 70% of the units within Polo Glen Apartments feature ground-floor entries, nearly one-half include a direct-access garage and the average size consists of approximately 1200 square feet of space. Community amenities include an interior lake; resident clubhouse outfitted with a swimming pool and fitness center; car wash facility; community entertainment area with an outdoor barbecue and fireplace; children’s playground; tennis courts and a lakeside walking path network. The units feature nine foot ceilings cherry cabinetry, full washer and dryers and screened patio balconies.
Rockledge is located within immediate proximity to what is recognized as a rapidly-expanding business area, including the high-tech sector and aerospace industry, with The Space Coast supporting the largest share of Science, Technology, Engineering and Math (STEM) jobs in Florida. The Space Coast is the ranked second in Florida for project capital investment and currently contains more than 15,000 businesses. Notable nearby employers include Harris Corporation, Northrup Grumman, the Kennedy Space Center, Patrick Air Force Base and SpaceX.
The average household income located within a three-mile radius of Polo Glen Apartments exceeds $75,000, a figure that is more than $10,000 above the average in the State of Florida. Projected population growth between 2015 and 2020 is approximately 7.4% and nearly 70% of all residents within this three-mile radius has a college degree.
According to various research companies that track the multi-family residential industry, as of December 2015, the annual effective rent growth in the Melbourne-Palm Bay metropolitan statistical area was 9.5% and no new market-rate apartments have been delivered within the past year.
Continental Realty Corporation, headquartered in Baltimore and founded in 1960, is a full-service commercial real estate investment and management company. The privately-owned firm owns and manages a diversified portfolio of retail centers consisting of over 3.5 million square feet of space, as well as apartment communities featuring nearly 10,000 apartment homes. Positioned throughout the Mid-Atlantic and Southeast regions, the value of the portfolio exceeds $1.5 billion.
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