January 3, 2020
CRC Sells 252-Unit Polo Glen Apartment Community in Rockledge, Florida for $55.25 Million
Transaction represents first asset sale by Baltimore-based Continental Realty Fund IV, a $164 million fund that seeks value-add retail and multifamily opportunities throughout the country.
BALTIMORE, MD (December 27, 2019) — Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company, has announced the sale of Polo Glen Apartments, a residential community consisting of 252 garden-style apartment units in the Rockledge area of Brevard County, Florida for $55.25 million. The asset is located on Florida’s Space Coast, near Cocoa Beach, Melbourne and Viera.
Scott Ramey and Patrick Dufour of Newmark Knight Frank Multifamily Capital Markets represented CRC in this transaction.
Continental Realty acquired the asset in 2016 from Pollack Shores for $38 million.. Polo Glen represents the first sale out of Fund IV. CRC acquired Polo Glen Apartments for $150,000 per unit and disposed the asset for $220,000 per unit.
“This was a well-executed thesis, start to finish,” stated David Donato, Senior Vice President of Continental Realty Corporation. “When we were initially introduced to the deal back in 2016, it was clear to us early on that there was something special about this area. NASA’s downsizing on the Space Coast a few years prior had weakened the market temporarily– but we were able to see beyond the turbulence. We saw job growth fueled by the privatization of the aerospace industry, the emergence of government contracting jobs, and a thriving port. Our acquisitions team was able to identify this opportunity ahead of the curve.”
Constructed in 2008, Polo Glen Apartments featured several design elements that differentiate it within the marketplace. More than 70% of the apartment homes at Polo Glen feature ground floor entries, nearly half include a direct-access garage, and the average unit size of 1,200 square feet is among the largest in the submarket.
Following its acquisition of Polo Glen Apartments, CRC initiated a comprehensive repositioning effort. This included renovation of the clubhouse, leasing office, business center, and fitness center, featuring a Peloton bike studio. Outdoor amenity spaces were overhauled to bring in a California Kitchen, a large fire pit, and outdoor entertaining space. The enhancement package also included the conversion of the tennis court to a dog park, the painting of the community exterior, and an interior unit renovation program.
“We carried out a thoughtful repositioning plan,” Donato added. “During our hold we saw luxury product being developed in the area, garnering rents well above what the region had seen in the past. We rolled out an amenity renovation plan and an interior unit renovation program that allowed us to draft off those higher rents. In our three-year year hold, we saw great success in growing rents and driving value. It was a team effort with a fantastic outcome.”
Rockledge is located within immediate proximity to the high-tech sector and aerospace industry, with the Space Coast supporting the largest share of Science, Technology, Engineering and Math (STEM) jobs in Florida. According to research from the Economic Development Commission of Florida’s Space Coast, nearly 9,000 jobs were created in the area since 2010. This year, The Boeing Company and Lockheed Martin separately announced plans to establish division headquarters in the area, creating additional jobs. Other notable nearby employers include Harris Corporation, Northrup Grumman, the Kennedy Space Center, Patrick Air Force Base, and SpaceX.
Continental Realty Corporation (CRC) is focused on acquiring value-add retail and multifamily properties located throughout the Mid-Atlantic and Southeast regions of the United States. Headquartered in Baltimore and founded in 1960, CRC is a full-service commercial real estate and investment company. The privately-owned firm owns and manages a diversified portfolio of retail centers consisting of more than 5 million square feet of commercial space, as well as almost 10,000 apartment homes. Positioned throughout the Mid-Atlantic and Southeast regions, the portfolio’s value exceeds $2 billion. For additional information, visit www.crcrealty.com
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