Adjacent to an existing Northland property in Melbourne, FL, Caribbean Villas had fallen into disrepair and was being poorly managed by its’ then owners.  The community had multiple uninhabitable units and due to neglected repairs, tarps were covering roofs for more than a year. However, the structure of the property was incredible, it had great floor plans and garages, and desirable amenity potential. Additionally, the property was situated next to a Northland community in a high growth location with economic drivers such as major retailers, employers, colleges, sought-after beaches, and highways all nearby. Northland saw the value and potential in rehabbing this asset.

Opportunity

The management upside combined with the unique structural qualities of the asset was an incredibly rare combination to find, and thus a fantastic opportunity for Northland to turn the property around. Northland acquired Caribbean Villas in July 2016.

Execution

Since acquiring Caribbean Villas, Northland has completed extensive interior and exterior upgrades, including upgrading 40% of the units, replacing roofs, new exterior paint, new garage doors, updating landscaping, redoing parking lots, installing a new monument sign, and updating the clubhouse.

Results

From when Northland acquired the property in July 2016 to December 2017, total revenue has increased by nearly 79%. A year and a half after acquisition, Caribbean Villas was preleased at 97%

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Following a trajectory it set in 2016, sales of multifamily rental projects led all other asset classes in both Sarasota and Manatee counties in 2017.

Of the Top Five deals in the submarket, four were for apartment complexes. In 2016, three transactions made the Top Five.

Unlike in 2016, though, when 60% of the total dollar volume of the Top Five deals was the result of apartment transactions, in 2017 that figure jumped to 86%.

Analysts say apartment sales have been driven by a relative lack of new supply and steady gains in population, even as home ownership rates have fallen in Florida and throughout the U.S.

In keeping with the two-year trend, too, the apartment purchases in 2017 were made by large, national firms like Continental Properties Co. Inc., Northland Investment Corp. and Advenir Inc., all of whom have been seeking to increase market share and solidify positions for future balance sheet growth — the result of incremental rent hikes that have been a feature of the market since 2015.

1 Echo Lake Apartments: $76.1 million

Northland Investment Corp. followed its $112.4 million deal for the 35-story Element tower in downtown Tampa two weeks later by acquiring Echo Lake Apartments in Lakewood Ranch.

The 360-unit complex, which was completed in May, contains 12 buildings on 41 acres.

Matthew Gottesdiener, Northland’s chief investment officer, calls Echo Lake “one of the nicest garden-style, luxury apartment communities in the state of Florida.”

Echo Lake, which was 93% occupied at the time of Northland’s purchase, features a 3.5-acre park, a state-of-the-art fitness center, saltwater swimming pool and community garden plots among its amenities.

Throughout Florida, Northland now owns nearly three dozen apartment communities containing nearly 10,000 units.

To view the full list and article, visit https://www.businessobserverfl.com/section/detail/2017-top-deals-sarasota-manatee/

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Unlike the two other submarkets along the Gulf Coast, the Tampa Bay area had a balanced and measured 2017.

Its Top Five showcased a pair of hotel deals, an industrial sale and a suburban office portfolio transaction.

Analysts say the diverse nature of the transactions represents a robust market, and one that is likely sustainable into the coming year and beyond.

Tampa Bay also demonstrated consistency in 2017: Its Top Five deals, in terms of overall dollar volume, came in at just $1 million more than the combined take in 2016, and a scant $32 million more than the largest five transactions brought in 2015.

2 Element: $112.4 million

Boston-based Northland Investment Corp. paid the most for any multifamily rental project along the Gulf Coast in 2017.

The company also cemented its place as Florida’s second-largest owner and operator of market-rate apartments with the deal.

Matthew Gottesdiener, Northland’s chief investment officer, describes the 35-story Element as a “best-in-class, downtown high-rise asset.”

The 395-unit complex, at 808 N. Franklin St., opened in 2009.

Northland intends to upgrade Element’s amenities and make other improvements, Gottesdiener says.

To see the full article and list, visit: https://www.businessobserverfl.com/section/detail/2017-top-deals-tampa-bay/

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NEWTON, MA and Bradenton, FL (OCTOBER 30, 2017) – Northland Investment Corporation, a member of the National Multifamily Housing Council’s Top Fifty Owners, announced today the acquisition of Echo Lake, a 360-unit luxury apartment community. The purchase of the new development in the prestigious Lakewood Ranch master-planned community marks Northland’s sixth acquisition in as many months as the firm, now the second largest owner-operator of market-rate multifamily residential communities Florida, continues its expansion in the state.

“We are thrilled with the opportunity to acquire Echo Lake, one of the nicest garden-style luxury apartment communities in the state of Florida. This deal was particularly exciting for us, as we were able to again acquire a best-in-class community without a competitive marketing process, a testament to Northland’s unblemished track record and reputation for absolute surety of close,” said Matthew Gottesdiener, Northland’s Chief Investment Officer. “Bringing our leading management practices to a beautiful property in the desirable Lakewood Ranch community, we will offer Echo Lake residents excellent value while also advancing our overall long-term growth strategy.”

Completed this past May, Echo Lake is a twelve-building residential complex consisting of one-, two- and three-bedroom apartments, spread across an expansive 41-acre site. Echo Lake is fully stabilized, leasing up at record-speed without offering any concessions, and is currently 93% occupied. The community’s unprecedented amenity package includes a 3.5-acre park, a state-of-the-art fitness center, a zero-entry saltwater pool, and community garden plots. The Echo Lake acquisition is Northland’s second in the North Port-Bradenton-Sarasota metropolitan area. The firm also owns and manages the nearby Yacht Club at Heritage Harbor.

The post Northland Acquires Luxury Apartments in Prestigious Lakewood Ranch appeared first on Northland.

The Estates at Heathbook has 384 apartment homes and is ideally situated in Ocala close to I-75 and the shopping and dining of Market Street.  Apartments offer the best in comfort with attached garages, in-home full sized washers & dryers, and gorgeous amenities such as a 24-hour fitness center, dog park, swimming pool, playground, and more.

To see the Ocala Star Banner’s awards issue, visit https://issuu.com/ocalastarbanner/docs/botb2017osb

The post The Estates at Heathbrook Named Ocala’s Best Apartments appeared first on Northland.

The company purchased Element, a 395-unit residential tower in downtown Tampa. The property marks Northland’s fifth purchase within the last five months.

Northland Investment Corp. has purchased Element, a 395-unit, luxury residential tower in the urban core of Tampa. The firm now owns 32 properties in Florida, including two recently acquired apartment communities in Jupiter. Element community marks Northland’s fifth purchase in the last five months.

The 35-story property was built in 2009 and is located at 808 N Franklin St. The area offers various dining and entertainment options such as the Tampa Theater, just a one-minute walk from the tower. The property comprises a mix of one- and two-bedroom apartments and two-bedroom penthouses.

Community amenities include:

• clubroom with plasma TVs
• 24-hour fitness center
• cabanas
• concierge
• controlled access
• elevated sundeck with spa
• swimming pool
• theater room

“We are very excited to enhance our local presence in Tampa while playing an active role in the ongoing downtown revitalization. Tampa has generated impressive gains in job, wage, and population growth during recent years and we are thrilled to be acquiring a best-in-class downtown high-rise asset significantly below replacement costs,” said Matthew Gottesdiener, chief investment officer of Northland, in prepared remarks.

To view full article, visit: https://www.multihousingnews.com/post/northland-expands-its-fl-portfolio/

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TAMPA — Downtown Tampa’s Element apartment tower sold this week to a Massachusetts-based real estate investment company that plans to upgrade the skyscraper’s amenities and operate it long-term as a rental community.

“A gorgeous beacon for downtown Tampa,” Northland Investment Corp. chief investment officer Matthew Gottesdiener said of the 35-story Element at 808 N Franklin St., overlooking Curtis Hixon Waterfront Park. “We were looking for an opportunity to acquire a best in class in downtown high rise.”

The sale closed Thursday. Gottesdiener said the company doesn’t discuss what it pays for property, and a deed had not been filed with Hillsborough County as of late Friday afternoon. The Tampa Bay Business Journal reported a purchase price of $112.4 million.

The Element, with 395 apartments, last sold in 2013 for $98 million to a company tied to the Miami-based Crescent Heights real estate firm. It is the fifth acquisition in as many months for Northland, which Gottesdiener said is now Florida’s second-largest owner-operator of market-rate multifamily residential complexes, with 32 properties and 9,122 units.

At 460 feet, the Element is one of Tampa’s tallest buildings, with a distinctive postmodern style and a sleek glassy exterior. Though built less than 10 years ago, in 2009, the building’s interiors, pool deck, fitness center and club room could all use upgrades, Gottesdiener said.

“We’ll be investing millions in the property in coming years,” he said. That said, there are no plans to raise rents, convert the units to condominiums or sell the tower again anytime soon. “We look for investments that are built to last,” he said.

To view the article, visit:  http://www.tampabay.com/news/business/realestate/massachusetts-firm-buys-tampas-element-apartment-tower/2341842

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NEWTON, MA and Orlando, FL (SEPTEMBER 18, 2017) – Northland Investment Corporation, a member of the National Multifamily Housing Council’s Top Fifty Owners, announced today the acquisition of The Rialto, a 200-unit multifamily community in Orlando’s Doctor Phillips neighborhood. This is Northland’s fourth property in the Orlando area, following its recent acquisition of The Paramount on Lake Eola in May, which reflects its ongoing investment in the Orlando market. Northland already owns Ballantrae in Sanford, as well as Grandeville on Saxon in Orange City.

Built in 2015, The Rialto consists of one, two, and three-bedroom units that offer upscale interior finishes across 22 unique floor plans. The community’s expansive amenity package offers a mix of sophisticated and lifestyle-enhancing features designed to appeal to all tastes. These include two state-of-the-art 24-hour fitness rooms, a new technology lounge and business center, a luxe swimming pool, structured parking, and a recently updated outdoor patio with stunning views overlooking Spring Lake. The community’s central location on Orlando’s famed Restaurant Row places it at the epicenter of the city’s business, transportation, and entertainment hubs.

“We are excited to increase our ownership in Orlando, a market that continues to lead the state of Florida and the rest of the country in job growth and new economic opportunity,” said Matthew Gottesdiener, Northland’s Chief Investment Officer. “The Rialto represents the future of Central Florida luxury apartment developments, with walkability to premium retail and amenities, proximity to major job centers, and access to top quality schools.”

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Northland Investment Corp. has acquired two adjacent apartment communities in affluent Jupiter, Fla. Formerly known as Mallards Cove and Shell Trace, the properties were combined at closing and renamed Jupiter Isle.

The new Jupiter Isle consists of 359 units set on a low-density, 42-acre site. Northland plans to undertake a major renovation project throughout the property, including the creation of high-end interior living spaces and common amenities.

LOOKING AT THE MARKET

“Northland is continuing its expansion in the Jupiter market, which is experiencing some of the strongest economic and population growth in Florida,” said Matthew Gottesdiener, Northland’s chief investment officer.

“Jupiter Isle is the prototypical Northland value-add investment,” Gottesdiener continued. “It will be a comprehensive interior and exterior rehab program and a complete operational overhaul of an under-renovated asset in a high barrier-to-entry market.”

Full article here:

https://www.multihousingnews.com/post/investor-acquires-2-fl-communities-merges-them-to-1/

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While visiting our Fort Myers portfolio, we discovered a property on a beautiful 50-acre site that did not appear in market studies, was perceived to be subsidized housing and was running at 80% occupancy in a 96% occupancy market.  We unearthed that the owner was an absentee subsidized housing developer who had syndicated the equity and had no economic incentive to maximize cash flow.  Nor did the sponsor have the resources to repair damage from a tropical storm several years prior.  Northland had to “look through” the in-place investment optics and envision a value-add rehab for the property.

Opportunity

Negotiating directly with the owner, Northland was able to acquire Iona Lakes for significantly less than true current value, looking through the in place “performance” and leveraging our market-leading footprint to underwrite the cost of the rehab and the post rehab rental structure.

Execution

Iona Lakes’ value-add was diverse and comprehensive, including new interior units, exterior paint, curbing, parking lots, a perimeter wall, access gates, full-site landscaping, exterior lighting, irrigation, fountain and lake improvements, and new amenities including an outdoor kitchen and mini golf.

Results

By the end of the first year of ownership, revenue had increased and vacancy had fallen from 21% to 6%.  This trend of outperformance continued.  In the three years since acquisition, Iona Lakes revenue has increased and NOI has nearly doubled.

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