Lubert-Adler has acquired The Cove waterfront apartment community in Tampa, Florida in a joint venture with The Laramar Group for USD50.5 million.
The property was sold via an internet-based auction by LNR Property following a 2011 foreclosure.
The previous owner had planned a condominium conversion.
Laramar, which manages approximately 3,500 multifamily units in central Florida, owned The Cove from 1999 to 2005. The company will continue to manage the property, including overseeing a USD3 million repair and renovation programme. The property’s clubhouse, last updated in 2003, will be upgraded with a wi-fi lounge, business centre, and improvements to the fitness centre and clubroom. The existing tennis and racquetball courts will be converted into an outdoor recreation area with a large dog park.
Built in 1980, The Cove has a resort-like waterfront location on Tampa Bay, with a swimming pool, clubhouse, and lushly landscaped sundeck overlooking the water. Residents can walk, run, or bike historic Bayshore Boulevard, the bay’s longest continuous sidewalk. The Cove is convenient to I-75, downtown Tampa, and Tampa International Airport. Also nearby are the Tampa Aquarium, cruise ship terminal, and spring training camps for several major league baseball teams. The Cove offers discounted rental opportunities to members of the military stationed at nearby MacDill Air Force Base, which employs more than 18,000 people.
Lubert-Adler is specifically focused on creating significant current cash yield from mid-market size rental assets through value-add executions.
“We seek to achieve superior risk-adjusted returns for our investors by acquiring and renovating multifamily assets that can generate a substantial portion of the returns from current cash flow,” says Dean Adler, CEO and co-founder, Lubert-Adler Partners. “Our goal is to execute that strategy in top-tier submarkets of major cities with local experts.”
Lubert-Adler invests on behalf of national university endowments and state retirement systems.