Sarasota development sells for $5.1 million

Saulstars Court, a 54-unit multifamily home complex in Sarasota, sold for $5.1 million on July 26, more than 10% above the initial asking price.

Sean Dreznin and George Kruse of Ian Black Real Estate handled the transaction on behalf of Lat’s Development Inc. There were 11 offers on the property within four days, which Dreznin said is the latest sign of the strong demand for multifamily homes in the region.

“There’s not a lot of quality assets that come available in such a highly desirable area,” Dreznin said. “When they do, there’s no shortage of attention.”

The Gables at Honore won its bid for the development, located at 3400 Tyne Lane in Sarasota, south of the intersection of Honore Avenue and Webber Street, purchasing it for more than 10% above the original asking price of $4.6 million. The deal was a non-financing contingency all-cash deal.

“People we’re doing everything to get the property,” Dreznin said.

The Class B property consists of 27 duplex buildings, totaling 59,800 square feet, on 6.5 acres. According to a release from Ian Black Real Estate, occupancy was steady, in the low- to mid-90% range, including several units held back for renovation.

Ian Black Real Estate took the property to market on behalf of four siblings from Canada. They had inherited the property four years ago from their father, who had built and owned the complex since 1993.  

“While they loved the property, it just made sense to them to cash out,” Dreznin said. “They realized it was a good market.”

Dreznin said the higher-than-expected asking price for this property is the latest indicator of the demand for multifamily units like these in Sarasota.

“The market has been strong for a while and multifamily is one of those asset classes in commercial that leads the pack and has for a while,” Dreznin said. “There’s not a lot of qualify assets out there. If it’s priced right it will trade pretty quickly.”