Miami Beach, Florida — Miami Beach-based Fifteen Group has completed the acquisition of Turtle Creek Apartments, a 268-unit rental apartment complex located in Naples, FL. Florida Housing Finance Corporation (FHFC), which had previously foreclosed on the property, was the seller in the $12 million all-cash transaction.
“After strategically selling the vast majority of our multifamily portfolio from 2005 to 2007, we are pleased to be back on the buy side,” said Fifteen Group Principal Ian Sanders. “We are actively looking for more Turtle Creeks–properties or distressed debt secured by properties that are fundamentally sound and well-located but have suffered greatly as market fundamentals soured.”
“Fifteen Group’s dedicated team performed efficiently and professionally and closed this all-cash deal very quickly, which is the key to getting these types of deals done,” said Robert Given, Executive Vice President of CBRE, who represented the seller.
Completed in 1996 with development financing from FHFC’s Multifamily Mortgage Revenue Bonds Program, Turtle Creek will be converted to 100% market rate rentals. Fifteen Group plans significant upgrades in connection with the conversion and intends to strategically reposition the property. The property’s performance, physical appearance, and reputation clearly suffered through the default, foreclosure, and bankruptcy process.
In addition to installing new management and curing deferred maintenance, Fifteen Group plans substantial interior, exterior and common area upgrades to help completely rebrand the property so that it can successfully compete with newer market-rate communities in the strong submarket.
Founded in 1992 by brothers Mark Sanders and Ian Sanders, Fifteen Group’s investment activities focus on opportunity-driven, value-added acquisition and development projects.