Tampa-based Blue Magma Residential recently purchased its second apartment community in Pensacola, which is located at the tip of Florida’s panhandle. The firm paid $17.8 million for the 194-unit, 20-building Heritage Apartments which will be rebranded as The Park at Sterling Hills.
The property offers one-, two-, and three-bedroom apartment homes spread over 15.7 acres. The new acquisition clocked in at 95% occupancy at the time of closing, which was brokered by David Etchison of Berkadia. Financing was provided by Regions Bank. In December, Blue Magma acquired the 268-unit Fairfield Lakes Apartments in the same area for $29 million. The Fairfield Lakes community has been rebranded and marketed as The Park at Nottingham.
Reuven Oded, managing partner of Blue Magma, said the acquisition “marks the second stage of our company’s strategic entry into Pensacola’s value-add submarket.” Blue Magma Residential is a privately held commercial real estate management company that, through its affiliates, co-owns or manages over 10,000 apartment units in Alabama, Florida, Georgia, Mississippi, Tennessee, and Texas.
Blue Magma intends to invest approximately $2 million into exterior and interior improvements at its newly acquired property. Oded is bullish on Pensacola and especially the neighborhood in question. “Much like our prior acquisition, this property is well-located near Cordova Mall, Sacred Heart Hospital Pensacola, and the University of West Florida. I feel there is a growing opportunity, and frankly a void, in this under-serviced and under-appreciated real estate market,” he added.
