Earlier this month, Crescent Sky Real Estate Partners (CSREP) purchased a 30-building multifamily housing portfolio, Castle Apartments, located in Tallahassee.
CSREP, based in New York, seeks to “invest in superior risk adjusted multifamily, commercial, and residential real estate opportunities.” Tallahassee’s real estate market aligns with previously obtained ventures in Gainesville that CSREP has acquired.
“We are thrilled to be further expanding our real estate business, particularly in the Southeast housing market,” said Managing Partner, Charles Spero.
For this New York-based company, Florida is an ideal setting to make these real estate investments because of the high rate of net migration. Florida is ranked number one for annual net domestic migration and international immigration in the United States. Florida is also classified as a growth market and can produce a high return on real estate investments.
Combined with Florida’s high migration rates and Tallahassee’s low unemployment rate, Tallahassee provided opportunity for CSREP to expand their brand. In addition, the presence of stable employers in sectors like state government, universities and health care was attractive. According to the U.S. Bureau of Labor Statistics, Tallahassee’s unemployment rate has dropped from 5 percent to 3 percent and only spiked during the start of Coronavirus, but has been recovering and is less than Florida’s rate.
“We look forward to identifying additional opportunities to add to our portfolio in this region as well as other growing areas,” concluded Spero.
Currently, the Castle Apartments are at 97 percent occupancy.
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