13th Floor Sells Former Distressed Condos
It’s a textbook example of making money from the real estate cycle: In 2011, Miami-based 13th Floor Investments, along with the Estate Cos, acquired the 273-unit Sierra Grandein Naples out of distress for a little more than $5M. At the time, construction had just begun, and the property was slated to become condos. Recognizing strong rental demand and a lack of inventory in the market, 13th Floor repositioned Sierra Grande as Naples’ first luxury apartment complex to launch in more than a decade. Now the owners have sold the asset for more than $44M to Continental Realty Corp, a Maryland-based REIT, in a deal brokered by ARA Boca Raton-based principals Hampton Beebe and Avery Klann.
13th Floor Investments principal Michael Nunziata tells us that he’s still very bullish on investment in Florida, and believes that opportunistic deals are still available in special situations and through ground-up developments like Sierra Grande. “Certain submarkets have been picked over, but it’s still possible to uncover opportunities in niche markets, as we did in Naples,” he says. Michael’s on the left, cutting the ribbon to open the property for occupancy last year; now it’s 95% occupied.
