American Commercial Realty Corp. has paid $56.7 million for a three-property, 330-unit multifamily portfolio in Gainesville, Fla., public records show. JLL worked on behalf of the buyer to secure a three-year, $51.3 million acquisition loan from Trez Capital. The seller was an entity tied to local investor Nalbandian Properties.
The portfolio includes three neighboring properties just south of the major intersection of West University Avenue and 34th Street, within a mile of The University of Florida. The 146-unit Cazabella Apartments at 720 SW 34th St. is the largest property in the portfolio, followed by the 128-unit Camelot Apartments at 3425 SW Second Ave. and the 56-unit Village 34 Apartments at 328 SW 34th St.
The garden-style communities include a mix of one-, two-, and three-bedroom units, averaging 874 square feet. Property amenities include a pool with a sundeck and a fitness center. The buyer plans to improve the properties, according to prepared remarks from Kenny Cutler, director at JLL.
Strong Housing Demand in Gainesville
As the population continues to grow across Florida, Gainesville is feeling the effects of the strong demand for housing. However, the city’s current zoning regulations provide limited options for new development. At the beginning of the year, Gainesville’s Department of Sustainable Development proposed an inclusionary zoning policy that would consolidate all single-family zoning into one residential zone.
The change would facilitate small-scale multifamily development, remove occupancy restrictions, and boost bedroom limits within The University of Florida Context Area, The Gainesville Sun reported. According to the proposal, the new zoning would help diversify the city’s housing stock and would allow for a more equitable housing environment in Gainesville.