The per-unit sales price of apartments in Lee County has increased once again. 

Drift at the Forum, a 194-unit apartment complex at 3417-3425 Forum Boulevard in Fort Myers, sold for $62.5 million on Feb. 4, making it one of the biggest sales of early 2022. 

The per-unit price of $322,164 eclipsed the Lee County record of $315,000 per unit set in December when the nearby, 288-unit Encore Vive at the Forum sold for $91 million. 

MREF III AND IV were the limited liability corporations that made the purchases. Those appear to be owned by Momentum Real Estate Partners of Miami. The leaders of the company could not be reached for comment. 

The land on which the apartments were built last sold for $4.25 million in December 2019, property records show, prior to construction. 

This week, the apartment complex posted a letter about the new ownership and management groups. 

“It’s not hyperbole. Florida has been a star from the start of the pandemic in terms of the growth. And Southwest Florida has been the crown jewel of Florida.” – Matt Simmons, property appraiser with Maxwell, Hendry & Simmons

Leases at the complex start at $1700 for a one-bedroom. Amenities include a pool, yoga room, fitness center, one-hole putting green, a pool table and a movie theater. 

That the per-unit price record keeps falling and the rents keep rising did not surprise Matt Simmons, a property appraiser with Maxwell, Hendry & Simmons of Fort Myers.

“There’s more still to come,” Simmons predicted. “I know it seems crazy. How much higher can these prices go? Although you look at the top-line prices, it’s equally shocking for the people coming in to lease these units.”

Volatility in the stock market has caused some investors to put their cash elsewhere: tangible assets such as apartments. 

“We’ve still flooded the economy with cash,” Simmons said. “This is what happens in an inflationary environment. The last thing you want to do is just sit there. Your purchasing power continues to drop each day. So they are changing it into a tangible asset in a growth market like Southwest Florida. It’s not hyperbole. Florida has been a star from the start of the pandemic in terms of growth. And Southwest Florida has been the crown jewel of Florida.” 

The investors who held on to their cash when the pandemic began are looking to spend it now. As the supply of available assets keeps falling, the prices continue surging. 

“The investors, they have to deploy their cash,” Simmons said. “When you start looking at tertiary markets, Southwest Florida, again, because of our growth, is just so appealing. 

“On the other side of that, you can play the inflation game by trying to get your hands on tangible assets like this, period. You look at what the costs are. Both for the raw materials and the labor. 

“We’re seeing prices go through the roof. That’s driven by the costs. Costs are not going anywhere in the short term. You start looking at what the replacement cost would be. What would it cost to replicate this five years from now? We’re going to be in an increasing cost position. I can capitalize on something that’s going to be worth more no matter what happens.”