A 166-unit garden style apartment community in Brevard County rebranded last month after changing hands for $30.25 million, according to government records.
Carter Multifamily, an entity tied to Raymond Hutchinson and Thomas Guard, purchased The Palm Bay Grand Apartments at 145 Cinnamon Cove Drive on Feb. 20. The complex, which features seven buildings one block west of S. Babcock Street, is now known as Mode at Melbourne.
Brevard County records show Palm Bay Grand LLC opened the apartment community in 2020. A press release from Berkadia North & Central Florida noted Alabama-based TrimCor as the seller. Berkadia Managing Director David Etchison, Senior Managing Director Cole Whitaker, Director Mary Beale, and Director of Operations Lauren Gassie oversaw the transaction.
“The new owners saw an opportunity to acquire a newer asset in a fast-growing coastal Florida market where they could add value through interior upgrades and operational expertise,” Whitaker said in a statement. “Melbourne is just a short drive from Port Canaveral, one of the busiest cruise ports in the world, along with many space/aerospace industry employers, making it a desirable community for both tourism and tech industry workers.”
Mode at Melbourne is located 45 minutes south of Port Canaveral. Department of defense contractors Northrop Grumman and L3Harris Technologies are among the largest employers in the Melbourne-Palm Bay area.
The property, 95% occupied at the time of the sale, consists of one-, two- and three-bedroom apartment homes averaging 1,707 square feet, “the largest floor plans available in this market,” according to Berkadia. Rent prices listed at Apartments.com show a monthly range between $1,588 and $5,600.
CoStar Group, a local market analytics firm, told OBJ in February that the growing South Brevard County apartment submarket houses nearly 15% of all apartments in the county with an average of 101 units per complex and a rental cost of $1,513 per month. The Melbourne market averages 78 units at $1,637 per month.
No matter the asking price, the renewal rate from renters “is overwhelming” throughout Central Florida due to high interest rates and elevated home prices that have sidelined potential buyers, 101Units.com founder and multifamily investment advisor Joe LaFleur told OBJ.
“Job growth has been good in Melbourne and Palm Bay, but renting is still more affordable right now,” LaFleur said. “The gap between ownership of a home and the cost of renting is the largest it’s been in 20 years.”
