NAP Sells Tallahassee Community for $95M

The Cascades. Image courtesy of CBRE North American Properties has sold The Cascades project in…

The Cascades. Image courtesy of CBRE

North American Properties has sold The Cascades project in Tallahassee, Fla., which recently completed its first phase. The company sold the mixed-use project to Becovic Management Co. for $95 million, with CBRE’s Frank Carriera, Mike Regan, Joe Ayers, Cliff Taylor and Mike Harrell representing both the buyer and seller.

NAP began construction on The Cascades in 2019 after a nearly three-year public review process that involved local government and resident committees. The developer completed the first phase of the project in spring 2021, which included the 161-unit Millstream Apartments.

The residential portion of the first phase of The Cascades offered studio, one-, two- and three-bedroom units ranging from 483 to 1,610 square feet. NAP also built Millstream Apartments with a rooftop pool, fitness center, social club room and pet spa. But the apartments combined with 44,247 square feet of office space, 29,553 square feet of ground-floor retail, a 4,914-square-foot historic building, a 770-space parking garage and two plazas to make up The Cascades.

The project still has three development sites that can support up to an additional 173 residential units, according to NAP. Located at 850 S. Gadsden St., The Cascade is also directly across from Cascades Park and roughly a mile away from Florida A&M University.

Ayers, senior vice president at CBRE, said in prepared remarks that the property leased up at an extraordinary rate on the multifamily side. According to Yardi Matrix data, Millstream Apartments is 95 percent occupied.

PLANNING TOWARDS THE SECOND PHASE

Now that The Cascades is under BMG ownership, the new owner is planning to continue onto the project’s second phase plans while also fostering a long-term partnership with the community and the city, Muhamed Becovic, president of BMG, said in prepared remarks. BMG has several other communities across Florida, including a 252-unit community in Bradenton, Fla., that it acquired for $46.4 million in September 2019.

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As for NAP, the company has been focusing more so on the Atlanta market lately. In March, the company formed a second joint venture with Nuveen Real Estate to acquire a mixed-use property in the northern Atlanta suburb of Peachtree Corners, Ga. Previously, NAP also developed a 244-unit community in Atlanta before selling it in June 2018.