New York investor acquires fractured condos in Palm Harbor for $22.5M
By Breanne Williams
Tampa Bay Business Journal
Published: Sep 30, 2022

New York-based ESG Kullen has acquired 161 units of a 248-unit condominium community in Palm Harbor for $22.5 million.

The sale of the fractured condos closed on Sept. 15, according to Pinellas County records. Harbourtowne at Country Woods, located at 1697 Nantucket Court, has 248 condominiums on the property.

Charles Foschini and Christopher Apone, managing directors at Berkadia Miami, arranged the financing on behalf of ESG Kullen. Berkadia secured a $27.69 million loan for the acquisition. Berkadia is a joint venture of Berkshire Hathaway and Jefferies Financial Group.

“ESG Kullen was able to capitalize on their successful track record in the fractured condo space and identify a highly desirable fractured condo community in a high growth market, with a significant asset level of upside opportunities,” Apone said in a release.

A Pinellas County public record shows Amerant Bank National Association provided the five-year loan. According to a release, the loan is “at a highly competitive spread that included three years of interest only and future funding for additional unit purchases and CapEx renovations.”

Harbourtowne at Country Woods has one- to three-bedroom units that average from 675 to 1,300 square feet. The units have wood-burning fireplaces, all-electric kitchens and washers and dryers or connections. Amenities in the community include a swimming pool, spa, tennis and racquetball court, fitness center, clubhouse and a picnic area with barbecue.

ESG Kullen is a multifamily real estate investor that currently has 13 properties throughout Florida, six of which are in Tampa Bay. According to its website, the company specializes in value-add investment “with a focus on the multifamily housing sector.” It manages more than 7,000 units throughout New York, Florida, Illinois, Texas and California.

“[ESG Kullen’s] long-term experience in this asset space, and the Florida markets, provided an array of debt options with a bank execution that offered the best combination of flexibility and leverage while also bringing a highly competitive interest rate versus traditional debt fund lenders,” Apone said in the release.