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Franklin Street Brokers $5.6M Sale of Apartment Community in Tampa

TAMPA, FLA. — Franklin Street Real Estate Services has brokered the $5.6 million sale of Arbor Alley Apartments, an 80-unit garden-style apartment community located in South Tampa. Constructed in 1984, the property comprises two-bedroom/one-bath units with washer and dryer hookups. Robert Goldfinger, Darron Kattan, Kevin Kelleher and Zachary Ames of Franklin Street represented both the seller, a private partnership based out of Tampa, and the buyer, South Tampa Apartments LLC, an institutional real estate firm based out of Michigan.

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Cap Rates Shrinking in Big Guava

An 80-unit garden-style apartment community located in South Tampa landed recently in the hands of an Ann Arbor, MI-based institutional real estate firm.  The $5.6 million deal was announced by Franklin Street Real Estate Services, which represented both the buyer and the seller, a private partnership based out of Tampa, Fla.

Dubbed Arbor Alley, the apartment community was developed in 1984 and has been managed by its previous owner since 1999. Amenities include a swimming pool, laundry facilities, high speed internet access, and 160 parking spaces. Due to its location at 6237 South Manhattan Ave., the community has access to MacDill Air Force Base, Downtown Tampa, Pinellas County and the Westshore Business District.

“Larger apartment communities over 100 units are extremely desirable in today’s market,” Robert Goldfinger, managing director of Franklin Street Real Estate Services, said in a prepared statement. “Tampa Bay’s occupancy rates are very low and this provides opportunities for rent growth. Additionally, there is great demand and only so many properties available for purchase, which is causing supply constraints and a resurgence of historically low cap rates that disappeared after the 2008 recession.”

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Wildwood Villa Apartments in Clearwater Sell for $810,000

Franklin Street announces the sale of Wildwood Villa Apartments located at 600 Wildwood Way in Clearwater, Florida for $810,000. This sales price represents $45,000 per unit.

Zachary Ames, Darron Kattan, Kevin Kelleher, and Robert Goldfinger of Franklin Street, represented both the seller, a private partnership based out of Tampa Bay and the buyer, a Canadian-based investor, during the transaction.

“The buyer was in the process of migrating capital from Canada to Florida and they selected the Tampa Bay area after determining pricing in the South Florida market was too elevated,” Ames said. “Wildwood offered a solid value-add opportunity and had continuous strong interest for apartments in today’s market which allowed for a closing within contract timeframes and 2 percent of the listing price.”

Ames’ team continues to see a strong influx of foreign investors eyeing Florida multifamily viewing the U.S. as a safe haven for their capital. “Many of these buyers are coming up from Southeast Florida searching for higher yields which the Central Florida market can deliver,” Ames said. Wildwood is an 18-unit garden-style apartment building located within 1.5 miles of downtown Clearwater and only three miles away from the Gulf Coast beaches. Constructed in 1972 of concrete-block construction and situated in a coveted area with a high barrier to entry, the property is comprised of one-and two-bedroom units. All units have recently been renovated with new appliances, cabinets, windows, granite countertops, and renovated bathrooms.

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About Franklin Street: Franklin Street is a family of full-service real estate companies focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise, and experience of each of its divisions—Real Estate, Capital, Insurance, and Management—Franklin Street offers unmatched value and optimal solutions for clients nationwide. For more information on Franklin Street, please visit FranklinSt.com. – See more at: http://www.tampabaynewswire.com/2015/07/24/wildwood-villa-apartments-in-clearwater-sell-for-810000-36974#sthash.yVJ85ig9.dpuf

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Franklin Street Brokers Sale of Shopping Center in Athens

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ATHENS, GA. — Franklin Street Real Estate Services has brokered the sale of Athens Plaza, a 119,633-square-foot shopping center located at 474 North Ave. in Athens. Built in 1972, the property is anchored by a Piggly Wiggly. Mac McCall, John Tennant and Bryan Belk of Franklin Street’s Atlanta office represented the seller, MB REO-GA RETAIL LLC, in the transaction. Cideco Development Co. Inc. purchased the property for an undisclosed price.

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Wildwood Villa Apartments in Clearwater Sell for $810,000

Franklin Street announces the sale of Wildwood Villa Apartments located at 600 Wildwood Way in Clearwater, Florida for $810,000. This sales price represents $45,000 per unit.

Zachary Ames, Darron Kattan, Kevin Kelleher, and Robert Goldfinger of Franklin Street, represented both the seller, a private partnership based out of Tampa Bay and the buyer, a Canadian-based investor, during the transaction.

“The buyer was in the process of migrating capital from Canada to Florida and they selected the Tampa Bay area after determining pricing in the South Florida market was too elevated,” Ames said. “Wildwood offered a solid value-add opportunity and had continuous strong interest for apartments in today’s market which allowed for a closing within contract timeframes and 2 percent of the listing price.”

Ames’ team continues to see a strong influx of foreign investors eyeing Florida multifamily viewing the U.S. as a safe haven for their capital. “Many of these buyers are coming up from Southeast Florida searching for higher yields which the Central Florida market can deliver,” Ames said.

Wildwood is an 18-unit garden-style apartment building located within 1.5 miles of downtown Clearwater and only three miles away from the Gulf Coast beaches. Constructed in 1972 of concrete-block construction and situated in a coveted area with a high barrier to entry, the property is comprised of one-and two-bedroom units. All units have recently been renovated with new appliances, cabinets, windows, granite countertops, and renovated bathrooms.

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About Franklin Street: Franklin Street is a family of full-service real estate companies focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise, and experience of each of its divisions—Real Estate, Capital, Insurance, and Management—Franklin Street offers unmatched value and optimal solutions for clients nationwide. For more information on Franklin Street, please visit FranklinSt.com.

– See more at: http://florida.realestaterama.com/2015/07/24/wildwood-villa-apartments-in-clearwater-sell-for-810000-ID01916.html#sthash.a3ODUO5n.dpuf

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Arbor Alley Apartments in Tampa Sell for $5.6M

Franklin Street announces the sale of Arbor Alley Apartments in Tampa for $5,600,000. This sales price represents $70,000 per unit. 

Robert Goldfinger, Darron Kattan, Kevin Kelleher and Zachary Ames of Franklin Street represented both the seller, a private partnership based out of Tampa, and the buyer, South Tampa Apartments, LLC, an institutional real estate firm based out of Michigan, in the transaction. 

Owner-managed since 1999, the property offered the buyer a value-add opportunity. Continued strong interest for apartments allowed for a smooth all-cash closing within 2 percent of list price. As there was significant interest in Arbor Alley, the buyer delivered a short due diligence time frame, a significant deposit and a quick closing to secure the transaction. 

“Larger apartment communities over 100 units are extremely desirable in today’s market,” said Robert Goldfinger, managing director of Franklin Street Real Estate Services. “Tampa Bay’s occupancy rates are very low and this provides opportunities for rent growth. Additionally, there is great demand and only so many properties available for purchase, which is causing supply constraints and a resurgence of historically low cap rates that disappeared after the 2008 recession. These factors are filtering down to smaller communities under 100 units.” 

Arbor Alley is an 80-unit garden-style apartment community located in a rapidly improving area of South Tampa known as South of Gandy. Constructed in 1984 of concrete block construction and situated in a coveted area with a high barrier to entry, the property is comprised of two bedroom/one bath units with washer and dryer hookups. The property’s advantageous location provides excellent access to MacDill Air Force Base, Downtown Tampa, Pinellas County and the Westshore Business District. 

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About Franklin Street: Franklin Street is a family of full-service real estate companies focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise, and experience of each of its divisions—Real Estate, Capital, Insurance, and Management—Franklin Street offers unmatched value and optimal solutions for clients nationwide. For more information on Franklin Street, please visit FranklinSt.com. – See more at: http://www.tampabaynewswire.com/2015/07/23/arbor-alley-apartments-in-tampa-sell-for-5-6m-36931#sthash.Z5D1y6OG.dpuf 

 

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Franklin Street Named 33 in Tampa Bay Fast 50

Franklin Street
Andrew Wright, CEO
3-Year Revenue Growth – 67.36%

At Franklin Street, it’s all about the people.

Franklin Street has won top-level talent in all its markets in the last year, from Miami to Atlanta. In Tampa, the company landed two veterans from CBRE Group and two directors from JLL Inc.

“We’ve really added a number of key people across a wide footprint,” CEO Andrew Wright said. “We’ll continue to grow and develop our own talent, and we are actively in pursuit of name-brand talent in all of our markets as well.”

That relentless pursuit of personnel combined with being smaller than some of its national competitors has driven the company’s growth, too, Wright said.

“From a competitive standpoint we’re up against a large battleship, but we’re a much more nimble organization than some of our larger national competitors which allows us to react faster,” Wright said. “I don’t have to answer to my quarterly shareholders – I don’t have a lot of those corporate problems, but we have the same capabilities and we can do as good, if not a better, job.”

Why are you most proud of being a fast-growing company in Tampa Bay?

Founded in 2006 during one of the toughest real estate climates, Franklin Street is proud to be recognized for the fifth year in a row as one of the fastest growing companies in Tampa Bay. Given the difficult state of the economy over that period, particularly in real estate, our success has allowed us to create jobs, train those who are new to the workforce, and showcase Tampa Bay as a great place to start and build a business. We are especially privileged to be one of the only commercial real estate companies consistently recognized for our growth.

At Franklin Street we believe in setting a foundation for strong, consistent growth. Our strength is truly our people and the relationships we’ve built with our clients and the communities in which we live and work. Each of our team members share our core beliefs – Collaboration, Integrity, Hard Work, Accountability – and strive to provide the most comprehensive advisory services in the industry. At Franklin Street, we grow our business only by helping our clients grow theirs.

Thank you Tampa Bay for providing us with the opportunity to be one of the Fastest Growing Companeis again this year! We look forward to sharing future successes with you.

What market conditions are helping your company’s success?

From its inception, Franklin Street was always planned to be a diverse multi-services firm focused on maintaining financial stability to coincide with the ever-changing real estate market. The diversity of our business lines includes multiple residual revenues as well as transnational revenue. This provides our company with safety nets during financial ups and downs unlike many other real estate companies. In addition to dynamic verticals, we also look to our multiple offices with several teams operating in numerous markets across all business lines – helping to further increase our financial strength.

Through the collaboration of our business lines, we were able to position our ocmpany to withstand the market downturn in 2008. We were able to successfully grow a real estate company in one of the hardest hit states during the greatest real estate and financial collapse since the Great Depression. The turmoil our company faced during a very young stage in its development helped secure the values we use to operate to this day; Collaboration, Integrity, Hard Work, and Accountability. Our method and experience as an advisory business – building relationships and increasing the value of our clients’ assets – helped garner the trust, reputation, and stability needed to build Franklin Street’s future.

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Franklin Street
500 N Westshore Blvd.
Suite 750

Tampa, FL 33609
Phone: 813-839-7300
Fax: 813-839-7330

Contact: Kelsy Pazur
Kelsy.Pazur@FranklinSt.com
Website: FranklinSt.com 

Year Established: 2006

Services Offered
Leasing, brokerage, management, insurance, debt placement, tenant representation, landlord representation.

Service Area
Nationwide

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Tampa Bay is the Recipient of Smarter Retail Concepts, New Development

The business and employment gains in the Tampa Bay market are helping landlords attract new retail names to the market to fill space and subsequently raise rents. The area shows good signs of a healthy market, with strong leasing activity and a growing need for new development.

The retail vacancy rate continues to drop, ending 2014 at 6.3 percent versus 6.9 percent in the first quarter of that year, according to CoStar. Rents are positively going the other way, rising to $13.73 per square foot from $13.57 per square foot over the same time periods.

Space is extremely tight in some submarkets, just 2.1 percent in south Tampa and northeast Tampa, and 4.5 percent in the larger I-75 corridor at the end of last year, according to CoStar.

The lack of space can be attributed in part to the slow pace of new construction. Developers and their lenders are being more cautious, having learned lessons from the last recession. At the same time, a number of new concepts, all of which are good for the market, are arriving in Tampa Bay.

The current situation puts landlords in even more control than they had last year. They’re using this period to raise rents to make up for revenues not realized in earlier years when the market was much softer. We’re entering a phase where rents are reaching, and sometimes exceeding, pre-recession levels for Class A space while nearing that for Class B space.

But retailers have gotten smarter since the recession and are being conservative on how much they are willing to pay. Some are holding off on entering the market until they find space that fits their budgets and needs.

New Developments

A strong retail market has encouraged new projects: a 441,000-square-foot outdoor outlet center in Wesley Chapel that’s scheduled to open in October; the 880,000-square-foot University Town Center mall that opened last October in Sarasota; the Bass Pro Shops still under construction and Top Golf that opened in December in Brandon; and active redevelopment projects now underway in Largo like Tri-City Plaza and Midway Plaza.

The last reflects the push for remaking space due to a lack of quality locations for new construction. Redevelopments today are better planned and have better parking and visibility. They are also sitting on expensive land. We’ve yet to see whether retailers will sustain the level of sales required to pay the kinds of rents landlords are asking for these projects.

One of the more anticipated projects is the proposed $1 billion development in the Channelside District in downtown Tampa along the waterfront and the area surrounding the Amalie Arena where the Tampa Bay Lightning play. The highly anticipated development will combine entertainment, sports, new office towers, a new campus for the University of South Florida (USF) medical school, hotels and residential all on roughly 40 acres, including the redevelopment of Channelside Bay Plaza. The initial phases of the project will break ground later this year, with a projected five-to-seven year build-out.

Experiential Retail

The Bass Pro and Top Golf stores mark the arrival of a key trend in the Tampa Bay market: experiential retail. They will join Studio Movie Grill, which opened in October at University Mall near USF and other forward-thinking retailers such as lululemon with their yoga classes and Apple with the Genius Bar. At International Plaza and Bay Street in Tampa, Restoration Hardware is building a 40,000-square-foot flagship store with fully furnished rooms, rooftop gardens, a restaurant and other amenities.

A skating rink in Pasco County, which will be one of the largest in Florida, will attract visitors and tournaments. It broke ground in February, and hotels, restaurants and stores are expected to follow to cater to the influx of consumers.

Healthy Economy

The recession certainly derailed retailers’ plans to enter the Tampa Bay market years ago, but with a stronger economy and government agencies attracting companies and pushing other businesses to expand, retailers feel more confident.

The numbers give them comfort: the Tampa Bay unemployment rate has plummeted to 5.5 percent in December from a peak of 12.5 percent in January 2010; Citigroup is adding 1,100 workers; and the state is trying to recruit Johnson & Johnson to open a facility with 700 jobs that pays above-average salaries.

A healthier economy is also attracting new restaurant concepts that range from upscale to quick service. For example, Tampa has seen an influx of Mexican restaurants such as Bartaco in Hyde Park Village, Hablo Taco in Channelside Bay Plaza, Besito at Westshore Plaza and the expansion of California Tacos to Go.

Fresh food is also the attraction at the growing number of specialty grocers, especially organic stores. Whole Foods and The Fresh Market continue to expand, and Sprouts Farmers Market, Lucky’s Market and Earth Fare are scouting sites. Locale Market in St. Petersburg at the newly renovated Sundial is an example of a local specialty grocer that is well worth a visit.

Other dining arrivals revolve around chef-driven concepts such as Fodder & Shine, which features Florida Cracker food using natural ingredients, and Bourgeois Pig, a New Orleans-style establishment. Ulele opened last year at Tampa Riverwalk and has quickly become one of top 10 requested restaurants on OpenTable. Roux, also modeled on NOLA cooking, is a hard reservation to get.

Consumer demand and retailer appetite for the Tampa Bay market will continue to reduce the supply of available space until development catches up. It takes a while to line up tenants and obtain proper financing. Builders must also find the right land; when they do, they unfortunately seem to face longer time periods to receive approvals from local government and lenders.

In the interim, retail centers are being transformed. The closing of many Radio Shack stores and downsizing of Sears and Kmart locations are being viewed as opportunities instead of a downside. Landlords have opportunities to upgrade their tenant mix to better suit today’s consumers’ tastes and shopping experience. This is a natural evolution, and in my opinion it’s a healthy one for Tampa Bay.

— By Brian Bern, Senior Director, Franklin Street Real Estate Services. This article originally appeared in the May 2015 issue of Southeast Real Estate Business.

 

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7 Maintenance Tips to Protect Your Property & Keep Tenants Happy

Owning and managing property requires regular capital improvements to ensure everything remains intact and that staff and occupants are fully protected. But have you also thought through the nitty-gritty maintenance chores that make the building shine and run smoothly to attract and keep tenants?

The two main decisions you’ll have to make are how often you will tend to all the required maintenance, and whether you absorb the costs — or pass them along to tenants through extra charges or via rent increases.

We talked with Chad Dewald, vice president of Franklin Street in Tampa, Florida, who shared his company’s seven keys to overseeing routine upkeep and preventative maintenance. His firm manages mostly larger buildings in South Florida, but the seven key components of his team’s preventative maintenance plan can be adapted to any size building or price point.

#1: Hire the right staff

If you own or manage multiple properties, you may have the budget to hire a maintenance director, but be careful if your portfolio ranges across a large geographic area. In those cases, it may be wiser to subcontract certain functions to property maintenance services that operate where your buildings are located.

If you manage a single small building, though, it’s unlikely you can afford to have a full-time maintenance staff member who sits and waits for problems to arise. In those cases, subcontract the work on an as-needed basis. Or, in other cases you may be able to handle the work yourself. (Developing some basic mechanical know-how can save you a lot of money in the long run as a property manager.)

#2: Be meticulous about trash pickup

There are two main options, according to Dewald. The traditional method is to set a large dumpster or dumpsters in the corner of a parking lot or at the back of a building if there’s no lot. This will be the most sanitary solution and environmentally safe, and it will keep your site looking its best at all times. Tenants can bring their trash out daily or as needed.

The second option is to hire a valet trash removal service. These companies provide residents with discreet receptacles outside their front doors and pick up the trash on a pre-determined schedule.

This second strategy relies on tenants to cooperate and act responsibly. What you have to make clear is that if they miss scheduled pick up times, their trash will remain in the open until the next pickup day, which can result in an unsightly, unsanitary, and foul-smelling mess.

Who pays for this valet service? Dewald’s company has found that most tenants are willing to pay for it, usually as part of a monthly charge that includes utilities like water, sewer, and gas.

#3: Keep hallways & other common areas spotless

This is another routine that Dewald’s company has its maintenance crew handle since tenants expect shared spaces to look their best. Keeping them in prime condition falls under the category of regular, required building upkeep, along with pressure-washing façades, tending to outdoor areas when leaves fall or snow piles up, and cleaning gutters, downspouts, roofs, and so on.

This kind of upkeep and its associated costs are more than worthwhile for the owners of the building to absorb because it leads to better curb appeal, fewer accidents, and lowered liability risks.

#4: Make the building pest-free

This is yet another task that Dewald’s company has found essential to provide: a safe, clean, healthy, and pest-free environment for tenants. And it’s inexpensive for buildings to afford, he says, pegging the average monthly cost at $1.25 to $1.50 per unit.

When problems arise, his company’s contracts with property maintenance service providers require them to return when needed, with the building again picking up the tab instead of the tenants. The exception, Dewald says, are fleas and bedbugs. “Eliminating either is expensive and time-consuming, and it’s a cost we’ve found we have to pass on to the tenants who were responsible,” he says.

#5: Paint & replace countertops, balancing durability and aesthetics

Owners and property managers need to build into their budgets the cost of repainting walls, adding new counters or repairing existing ones, and fixing floors before new tenants move in, along with other similar improvements, Dewald says. How much these jobs cost will depend in part on tenant turnover. His company finds its annual turnover hovers between 30 and 40 percent.

In many cases, Dewald says his staff can repair a chipped countertop without replacing it by using an epoxy finish. The same goes for cracked linoleum flooring installed in squares or rectangles rather than in one big roll, which would have to be totally replaced. Carpeting can often be dyed nowadays rather than replaced, and even wood-style flooring can be repaired in smaller areas when planks or smaller squares or rectangles are used.

When repairs are necessary due to damage caused by tenants, Dewald’s company passes the cost along to them, whether it’s a chipped countertop, damage to drywall, or a broken window or door screen. But his firm tries to maximize the value on these items by balancing durability with aesthetics.

“The improvements need to be justified by the increased rents they will create. If you can’t bump rents by installing granite, don’t install granite,” Dewald advises.

#6: Repair & replace appliances

Regular repairs due to age or malfunctions are also typically handled and paid for by the building owners. Dewald’s company budgets for appliances to last six years or so. Costs are passed on to tenants when they’ve misused equipment, although he says, “It can often be tough to prove.”

#7: Set up a system to efficiently log & respond to work orders

Have a good system in place for tenants to log requests and problems, and make sure to respond quickly. Have an answering service pick up when you’re unavailable, share your email address, or add a drop box where they can leave notes about repairs. Even better, use property management or maintenance work order software that enables tenants to log maintenance requests using apps on their smartphones, tablets, or computers.

Finally, aim to get the job done within 48 hours. How much of the maintenance costs you absorb or share and how quickly you get back to tenants regarding their requests are two matters many tenants view just as important as carrying out the repairs.

The reason is simple, Dewald says: “Tenants want to know that you’ve heard them.”

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Sunday Business Notebook: Ace Hardware

Ace Hardware is moving into a former Eckerd Drug Store at 150 San Marco Ave. in St. Augustine. The building had been vacant for more than 15 years. Carrie Smith of Franklin Street negotiated the lease.

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