Capital Luxury Condominiums is an excellent opportunity to acquire majority ownership of a newer vintage condominium property built in 2006. Current ownership controls 68.7% and the condo association maintains first right of refusal to continue acquiring more units over time with a possible end goal of collapsing the association.
Originally constructed as student housing, the condo association documents are friendly to short term rentals and maintains minimal tenancy restrictions including the lack for association approval for new tenants allowing an operator to run a traditional student housing model. Based on the current unit mix, Capital Luxury Condominiums is an opportunity to add 316 beds to the growing universities of FSU, FAMU, and TCC. Additionally ownership includes the clubhouse and general store/kitchen services available as a profit center if student housing is activated at the property.
Capital Luxury Condominiums currently operates as a market rate residential rental community. The property has seen significant stabilization efforts including building improvements, interior unit improvements, association operational improvements, and rebranding efforts. Many units have seen renovations that include but are not limited to new kitchens, flooring, appliances, and more. Buildings have seen many new roofs and common area improvements that include workout facilities and more. The property includes general offices, study areas, resort style pool, workout facilities, and general store with complete kitchen/hood.
STUDENT HOUSING OPPORTUNITY
Per our research, vacancy rates for student housing in the Tallahassee MSA was lower than the overall multifamily market at a rate of 5.9% in 2023 therefore indicating a tightening market. A fully realized student housing conversion could result in gross income gains of half a million to a million dollars or more conservatively based on the researched data and strength of the operator.
As an example of the need for student housing in the market, The Tribe Tallahassee is a 693 bed student development being delivered for the fall of 2025 reached full occupancy in weeks of opening applications illustrating the growing need for beds in the market. The data suggests an increase of 30% over the three years leading up to March 2024 in student housing rental prices. With close proximity to FSU and FAMU respectively, Capital Luxury Condominiums is positioned to provide excellent student housing accommodations in a market that desperately needs it.
Tallahassee's universities are not only growing in student numbers but also in academic reputation, research activity, and the scope of their programs. This growth contributes significantly to the city's dynamism and economy. The increasing application numbers and, in the case of FSU, rising selectivity, suggest a growing demand for higher education in Tallahassee. Additionally, the focus on transfer pathways at TSC indicates a collaborative growth model within the Tallahassee higher education landscape.
PROPERTY HIGHLIGHTS
123 Individually Parceled Condominiums | 179 Total | 68.7% Ownership Ratio
Value Add Opportunity | Student Housing Operations Possible | Limited Restrictions
Bulk Ownership Maintains First Right of Refusal for Continued Unit Acquisitions
Major Repositioning Efforts Completed | Association Stabilized
Bulk Owner Has Board Control
No Tenant Approval Process
Bulk Owner Control of Common Areas | Clubhouse & Kitchen/Store
Irreplaceable Price Per Square Foot | $116.00
Close Proximity to Capitol Complex (FL)
Close Proximity to Three Major State Universities | FSU, FAMU, TSC
Ability to Add 316 Student Beds via Unit Mix
Desirable Unit Mix | (88) 3/3 (17) 2/2 (18) 1/1
COSTAR ANALYTIC HIGHLIGHTS | STUDENT HOUSING
Transaction Per Unit Range | $331,705 - $346,295
Market Rent Per Bed Range | $863 - $947
Market Cap Rate Range | $5.39% - 5.93%
Asking Rent Per Square Foot | $2.46
*Analytics Sourced from 61 Existing Buildings Built Between 2000-2025 in the Tallahassee MSA From 3 Years of Data
GROSS INCOME REVENUE ESTIMATES PER ROOM
$900 Per Month X 316 Rooms = $3,412,800 Before Vacancy
$800 Per Month X 316 Rooms = $3,033,600 Before Vacancy
$700 Per Month X 316 Rooms = $2,654,400 Before Vacancy
*Pro Forma Estimates Only Should New Ownership Transition to Student Housing Model
LOCATION DESCRIPTION
The Capital Luxury Condominium opportunity is located in the capital city of Tallahassee, Florida. Originally created in 1824, this historically significant city became the state capital due to its close proximity to both St Augustine and Pensacola which at the time were the major areas of commerce for the state.
Capital Luxury Condominium enjoys excellent access to all major universities in the area including FSU, FAMU, and TCC which are all growing in size and scope of their offerings.
As the capital city of Florida, the Capitol Complex features all government functions for the local, state, and federal governments. The state of Florida currently ranks as the fourth largest economy of the United States with a GDP of $1.74 Trillion Dollars and growing, thereby adding to the requirement for robust government services over time.
The city of Tallahassee has grown its population by 7.7% between 2010 and 2022. The Tallahassee MSA has grown to a population of 400,030 in 2024, a 4.1% increase from 2020. With economic drivers of Government, Education, Healthcare, Professional Services, Manufacturing, Research and Technology, Capital Luxury Condominiums is well positioned to participate in the long term growth of the local area and the State of Florida respectively.
PROXIMITY HIGHLIGHTS
+/- 1 Mile to Florida A&M (FAMU)
+/- 2.2 Miles to Florida State University (FSU)
+/- 4 Miles to Tallahassee State College
+/- 2 Miles to Florida State Capitol Building and Government Complex
