Although that appears to be an 11% drop in value on paper, original developer Joe Bonora of Catalyst Asset Management retained an undisclosed equity stake, which would make the actual decline in value higher.\u00a0<\/p>\n
Walker & Dunlop\u2019s brokerage team of Brian Moulder, Chris Chadbourne and Dhaval Patel represented Apex One in the transaction, a news release states.\u00a0<\/p>\n
TerraCap also paid $1 million for a 1.3-acre vacant parcel at McGregor Boulevard and Altamonte Avenue and about $500,000 for a 0.45-acre parcel off McGregor and Virginia Avenue, property records show. Bonora had planned to build more units there, but TerraCap instead will explore constructing luxury townhomes on the sites, said Steve Hagenbuckle, managing partner at TerraCap.\u00a0<\/p>\n
\u201cWe\u2019ll go vertical there and do some type of high-end housing, whether it be townhomes or something along those lines,\u201d he said. \u201cWe\u2019re in discussions with potential development partners that we would work with on that.\u201d\u00a0<\/p>\n
<\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/us-fl\/wp-content\/uploads\/2025\/11\/690a0ff177b4a.image.jpg\")
<\/p>\n
The 318-unit West End at City Walk features resort-style amenities, including a pool, fitness center and home theater.<\/p>\n
West End at City Walk<\/p>\n
The vacant land value fell about 40%, from $2.5 million to roughly $1.5 million.\u00a0<\/p>\n
The deals reflect two trends \u2014 peak values reached in 2021-22 and a continued decline due to higher interest rates and higher vacancy rates in 2025.\u00a0<\/p>\n
This environment gave Houston-based Apex One reason to sell, and TerraCap reason to buy, Hagenbuckle said. Apex One could not be reached for comment.\u00a0<\/p>\n
\u201cPeak pricing was four years ago,\u201d Hagenbuckle said. \u201cPart of it sometimes has to do with the seller\u2019s debt structure, if they had floating debt with maturity. And the interest rates are double.\u00a0<\/p>\n
\u201cIt can create a loss of equity. That would require a significant paydown. Even if you can afford the higher interest rates, at the price it was paid, it makes it a real challenge. Their debt was only for three years. So, they\u2019re facing a maturity. They would have to renew at double the interest rate.\u201d\u00a0<\/p>\n
Despite higher interest rates, the reduced price made the acquisition feasible, he said.\u00a0<\/p>\n
\u201cIt\u2019s very new,\u201d Hagenbuckle said. \u201cIt\u2019s four years old. It has the highest level of amenities of any of the properties in the area by far. They\u2019re basically resort-style amenities. They have all kinds of things in there, from golf simulators, very spacious fitness centers, a home theater.\u00a0<\/p>\n
\u201cWe feel we have superior amenities to the other ones around there.\u201d\u00a0<\/p>\n
TerraCap owns assets in Florida, Georgia, the Carolinas, Colorado, Texas and Arizona.\u00a0<\/p>\n
\u201cWe\u2019re in a lot of the rapid-growing markets that have a lot of in-migration and corporate relocations,\u201d Hagenbuckle said. \u201cThat drives a lot of migratory trends.\u201d\u00a0<\/p>\n
Locally, TerraCap\u2019s properties include Versol apartments in Bonita Springs and Estero Oaks off Estero Parkway in south Fort Myers. It also developed Estero Parc, a 198-unit gated community off Terracap Way in Estero.\u00a0<\/p>\n
As for rents at West End at City Walk, those won\u2019t be affected by the ownership change. ZRS will manage the property, and TerraCap plans to invest further, including bolstering security.\u00a0<\/p>\n
<\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/us-fl\/wp-content\/uploads\/2025\/11\/690a10342d4ae.image.jpg\")
<\/p>\n
West End at City Walk in Fort Myers sold for $71.5 million to TerraCap Management, marking an 11% price drop since its 2021 sale.<\/p>\n
West End at City Walk<\/p>\n
For those who recently renewed leases or are about to, TerraCap will offer a perk \u2014 free tickets to the Live Fest music festival Dec. 13 in Naples. Hagenbuckle founded the festival five years ago. The tickets sell for $150.\u00a0<\/p>\n
\u201cIn the near future, we don\u2019t have plans to change the rents,\u201d Hagenbuckle said. \u201cThat\u2019s market driven. There is a fair amount of extra supply in the Fort Myers area. It would be very difficult to push rent. That\u2019s all underwritten into our business model and plan.\u201d\u00a0<\/p>\n
Before redevelopment, the West End at City Walk site was a shopping center that was leveled to make way for the apartments. The vacant 7.8-acre site sold for $7 million in February 2018. Phil Fischler of Fischler Property Co. brokered that deal but was not involved in the recent sale.\u00a0<\/p>\n
\u201cThe Lee County multifamily market is recalibrating after an extraordinary surge, with rents up more than 30% in 2022 and easing by 7% over the past 12 months,\u201d said a statement from Catalyst Asset Management. \u201cWhile some short-term softness is expected, the long-term outlook remains strong, underpinned by steady in-migration and sustained population and job growth across Southwest Florida.\u201d\u00a0<\/p>\n
Paige Rausch, who monitors Lee County\u2019s real estate market and is a consultant with Aslan Realty Advisors, said she analyzed the sale using Gemini, Google\u2019s artificial intelligence-driven platform.\u00a0\u00a0<\/p>\n
\u201cIn short, the price decline reflects a necessary recalibration of values in response to lower income-generating potential (due to higher vacancy and slower rent growth) and significantly higher costs of capital and operation,\u201d the report said.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Signs of a \u201crecalibration\u201d in Southwest Florida\u2019s apartment market have surfaced with the sale of West End at…\n","protected":false},"author":2,"featured_media":33331,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[23382,209,211,210,897,10735,23384,23383],"class_list":["post-33330","post","type-post","status-publish","format-standard","has-post-thumbnail","category-cape-coral","tag-apartment-market","tag-cape-coral","tag-cape-coral-headlines","tag-cape-coral-news","tag-fort-myers","tag-interest-rates","tag-real-estate-transaction","tag-west-end-at-city-walk"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/33330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/comments?post=33330"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/33330\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media\/33331"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media?parent=33330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/categories?post=33330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/tags?post=33330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}