The Reserve at Coconut Point apartment complex just sold, as the per-unit pricing of apartments in Southwest Florida continues to creep toward $400,000 per unit.
The 180-unit complex sold for $71.7 million, which amounts to $398,333 per unit. At 163,800 square feet of rentable area—an average of 910 square feet per unit—that’s $437 per square foot with units renting for an average of about $2,200 per month.
Coconut Point Holdings LP purchased the site in 2017 for $2.2 million prior to construction.
Air Communities of Denver under the Reserve at Coconut Point LLC name, bought the property May 13 in a deal brokered by Jamie May of JBM Institutional Multifamily Advisors in Naples. It’s located on the southeast corner of Williams Road and Coconut Point at 22980 Vista Edera Circle in Estero, located along the roundabout intersection.
Air Communities owns 76 different apartment communities in 11 states totaling about $10 billion in value. The publicly traded company declined comment about the purchase, deferring to its next quarterly earnings report.
Air Communities saw its revenue climb by 9.2% from the first quarter of 2021 to 2022, according to its first quarter earnings report. In addition to buying properties, Air Communities has been selling.
“We seized the opportunity to sell our lowest-rated properties at prices fueled by then-historic low interest rates, generating $1.7 billion in sales proceeds over the past eight months,” CEO Terry Considine said in the company’s quarterly earnings report.
The Reserve at Coconut Point just received its certificate of occupancy from the Village of Estero.
“We went to market with it at 35% leased,” May said. “We just got the final certificate of occupancy in the last two weeks. The leasing office was open, but the buildings had not been complete as of yet. Now people can move in.”
As the only new apartment complex in the Coconut Point corridor, this one drew plenty of interest, May said. “We only marketed it for 30 days,” he said. “We had 23 offers on the asset. We’ve had a lot of interest from that group in the past. We were happy to see them at the table.
“All of the parking is underneath the buildings, which makes it a really high-quality development. The average income for the tenants who live there is $180,000.”
Its proximity to Hertz’s corporate headquarters and Coconut Point’s retail and office sector also factored into the price.
The complex was developed by 13th Floor Investments out of Miami, in partnership with Wexford Capital. Daryl Shevin, CEO of 13th Floor Investments, said the sale coincided with a surge in rental activity across the state.
“The Village of Estero is home to the region’s largest employers, which is fueling a robust and growing population as well as many new, high-wage job opportunities,” Shevin said. “The Reserve at Coconut Point supports this momentum and delivers much-needed housing to this dynamic and burgeoning community.”