Dealmaker: Marcus & Millichap Brokers $61M in Property Sales

Marcus & Millichap, Calabasas, Calif., sold a hotel and two multifamily properties in transactions totaling $60.6 million.

In Fort Walton Beach, Fla., Marcus & Millichap sold the six-story, 100-room Best Western Fort Walton Beachfront at 380 Santa Rosa Blvd. for $23.6 million.

David Altman, Robert Hunter and Leo Reilly, Investment Specialists in Marcus & Millichap’s Fort Lauderdale office, listed the property seller Fort Walton Beach Hotel Group Inc. and secured and represented buyer OTO Development LLC, Spartanburg, S.C.

“The seller originally built this hotel in 1998,” said Altman. “After going through the height of the COVID-19 period and coming out on the other side with record revenues in 2021, the group decided this was the perfect opportunity to sell the hotel.”

Altman noted strong demand for well-performing assets in Florida, especially beachfront hotels. He said the average revenue per available room in the Florida Panhandle hotel market grew at a 65 percent annual rate last year to $100.57 and the Fort Walton Beach submarket saw 81.8 RevPAR growth. “This growth shows that the Florida Panhandle, which was once an afterthought, continues to be a market that investors should keep an eye on,” he said.

Located at 380 Santa Rosa Blvd., “Fort Walton Beach is a high-barrier leisure destination positioned to benefit from sustainable RevPAR growth,” said Hunter. “Buyer demand for hotels in leisure markets is likely higher than ever relative to the rest of the market.”

Marcus & Millichap also sold a two-property multifamily portfolio in Long Beach, Calif. for $37 million. Located across the street from each other, Southfield West and Southfield East Apartments total 143 units.

“These two non-renovated assets were offered for the first time by a multi-decade owner,” said Tyler Leeson, Executive Managing Director of Investments in Marcus & Millichap’s Orange County office. “They are located in a northern area of Long Beach where no market-rate properties of 50 units or more have been built in over 30 years and none are currently under construction.”

Leeson noted any future development would require significantly higher rents, which should keep Southfield West and Southfield East Apartments well insulated against competition for the foreseeable future.”

Leeson worked with Marcus & Millichap’s Kevin King, Nick Kazemi and Matthew Kipp and Institutional Property Advisors’ Joseph Grabiec, Kevin Green and Greg Harris to represent the private investor seller. They also procured buyer Golden Bee Properties, Los Angeles.

“As homeownership remains out of reach for most residents, demand for quality rental housing will remain strong and place these two apartment assets in an excellent position to grow revenue while maintaining high occupancy,” Grabiec said.