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Office and Industrial adds Brokerage Coordinator

Andi Nunley

Date Added: November 30, 2015
Submission Type: Promotion
Current Employer: Franklin Street
Current Title/Position: Brokerage Coordinator
Industry: Commercial Real Estate
Previous Position: Transaction Manager
Duties/Responsibilities: Nunley performs several administrative, marketing, and research responsibilities, completes financial/revenue reporting, and helps manage projects for the entire Franklin Street Office and Industrial division.

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Franklin Street hires junior analyst

Chase Cermak

Date Added: November 24, 2015
Submission Type: New Hire
Current Employer: Franklin Street
Current Title/Position: Junior Analyst, Multifamily
Industry: Commercial Real Estate
Duties/Responsibilities: Cermak serves Franklin Street’s investment sales division specializing in the detailed financial analysis for multifamily properties across greater Tampa Bay and Southwest Florida. 

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Franklin Street Closes Five Deals in Five Days for More than $50 Million

Franklin Street, a full-service commercial real estate company, has closed the sale of five Tampa Bay multifamily communities in five days for more than $50 million.

The company’s Tampa-based team of senior director Kevin Kelleher, managing directors Darron Kattan and Robert Goldfinger and director Zachary Ames arranged all of the transactions. All of the multifamily communities involved are located in close proximity to Tampa’s major employment centers and have significant potential for rent growth and added value through capital improvements. The buyers and sellers are private companies from the Tampa area and various locations throughout the U.S.

“We continue to see demand exceeding supply for well-located apartments in the Tampa Bay MSA,” Kelleher said. “Pricing has certainly increased, but relative to other markets in the U.S., investors are finding value and growth potential in our market. We believe this trend will continue into 2016 despite the additional supply coming to the market.”

In the most expensive of the five deals, the Harbour Cay community at 12001 Belcher Road in Largo changed hands for $23.5 million. Harbour Cay has 276 one and two-bedroom garden-style apartments in 17 two-story buildings. It is in the midst of an interior renovation program and sold despite a loan assumption which required a large down payment.

The Park at Chesterfield at 5309 Chalet Court in Tampa sold for $14.75 million. The 244-unit apartment complex includes two sparkling pools, a state-of-the-art fitness center, barbecue area, children’s playground and business center. The buyer intends to implement an interior and exterior renovation plan to increase rents.

In a bulk condo deal, 353 units at University Oakwoods were sold for nearly $7 million. University Oakwoods is a 450-unit community at 1250 E. 113th Ave. between I-275 and the University of South Florida. It was constructed during the 1980s. This was a highly distressed condo which was fractured in the 1980s and the new owner intends to revert it back to 100 percent rental.

The 40-unit Bayside North community at 5009 S. Westshore Blvd. traded for $4.3 million. Bayside North is comprised of a mix of one and two-bedroom garden-style apartments. This property was previously a fractured condo. The seller bought back the previously sold units, as the property was more valuable today as a 100 percent rental community.

Lastly, the 46-unit Grove Court-Plant City community changed hands for $1.9 million. Located at 701 N. Mobley St. in Tampa, the five-building Grove Court community was built during the late 1970s. The seller was located outside of Florida, and a local operator believed he could provide better economies of scale to improve cash flow.

All of the buyers plan to make substantial investments to upgrade the properties.

# # # # 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, Management and Valuation—Franklin Street offers unmatched value and optimal solutions for clients nationwide. For more information on Franklin Street, please visit FranklinSt.com.

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Franklin Street Brokers Sales of Five Tampa Apartment Communities Totaling $50M

TAMPA, FLA. — Franklin Street Real Estate Services has closed the sales of five apartment communities in the metro Tampa area totaling more than $50 million. The five properties span roughly 950 units combined. Kevin Kelleher, Darron Kattan, Robert Goldfinger and Zachary Ames of Franklin Street brokered all five transactions. The buyers and sellers are private companies from the Tampa area and various locations throughout the U.S. The transactions included the $23.5 million sale of Harbour Cay in Largo, the $14.8 million sale of The Park at Chesterfield, the $7 million sale of University Oakwoods, the $4.3 million sale of Bayside North and the $1.9 million sale of Grove Court-Plant City, all in Tampa. All of the buyers are planning to make substantial investments to upgrade the properties.

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Five Deals, Five Days, $50M

ORLANDO—How much traction does the Tampa, FL multifamily market really have? Franklin Street just sold five apartment communities in five days for over $50 million.

Franklin senior director Kevin Kelleher, managing directors Darron Kattan and Robert Goldfinger, and director Zachary Ames brokered the multifamily deals. According to the company, all of the multifamily communities are located in close to Tampa’s major employment centers and have strong potential for rent growth and added value through capital improvements.

“The Tampa Bay multifamily sector continues to be a seller’s market, with more demand for quality apartments than supply,” Kelleher tells GlobeSt.com. “Buyers are seeking the security of multifamily as an investment vehicle. Out-of-state investors still consider Florida to be very affordable.”

In the most expensive of the five deals, the Harbour Cay community at 12001 Belcher Road in Largo changed hands for $23.5 million. Harbour Cay has 276 one and two-bedroom garden-style apartments in 17 two-story buildings. 

The Park at Chesterfield at 5309 Chalet Court in Tampa sold for $14.75 million. The 244-unit apartment complex includes two pools, a state-of-the-art fitness center, barbecue area, children’s playground and business center. The buyer intends to implement an interior and exterior renovation plan to increase rents.

In a bulk condo deal, 353 units at University Oakwoods were sold for nearly $7 million. Built in the 1980s, University Oakwoods is a 450-unit community at 1250 East 113th Avenue between Interstate 275 and the University of South Florida. This was a highly distressed condo that was fractured in the 1980s and the new owner intends to revert it back to 100% rental.

The 40-unit Bayside North community at 5009 South Westshore Boulevard sold for $4.3 million. Bayside North is comprised of a mix of one and two-bedroom garden-style apartments. This property was previously a fractured condo. The seller bought back the previously sold units, as the property was more valuable today as a 100% rental community.

The 46-unit Grove Court-Plant City community changed hands for $1.9 million. Located at 701 North Mobley Street in Tampa, the five-building Grove Court community was built during the late 1970s. The seller was located outside of Florida, and a local operator believed he could provide better economies of scale to improve cash flow.

“We continue to see demand exceeding supply for well-located apartments in the Tampa Bay MSA,” Kelleher says. “Pricing has certainly increased, but relative to other markets in the U.S., investors are finding value and growth potential in our market. We believe this trend will continue into 2016 despite the additional supply coming to the market.”

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Franklin Street Closes 5 Deals in 5 Days for $50M

Tampa, Fla.—The Tampa team of real estate company Franklin Street closed the sale of five Tampa-area properties in five days. Total price: $50 million.

Though geographically distributed from the Pinellas Suncoast on the west to Tampa on the east, all the multifamily communities sold are situated near the metro area’s primary job hubs. They also have substantial rent growth potential, as well as the upside potential of value added through capital improvements.

The buyers and sellers are private companies from the Tampa Bay metropolitan region as well as from across the United States.

“Our deep knowledge of the Tampa Bay market and detailed contact database made our team the clear choice for our investors,” Kevin Kelleher, senior director the company’s Tampa-based team, told MHN. “We have access to the most current market data and are able to provide that knowledge to our clients, giving them the information they need to add the most value to their portfolios.”

The most expensive of the quintet of deals was the sale of Harbour Cay in Largo, which changed hands for $23.5 million. The property features 276 one- and two-bedroom garden-style units spread across 17 two-story structures. Currently undergoing renovation, the property sold despite a loan assumption that required a large down payment.

Within the city limits of Tampa, The Park at Chesterfield was acquired for $14.75 million. Featuring 244 apartment homes, the property offers two pools, state-of-the-art fitness center, barbecue area and business center. Interior and exterior renovations planned by the buyer are expected to allow for future rent increases.

Near the University of South Florida, 353 units of the 450-unit University Oakwoods community traded for almost $7 million in a bulk condo deal. The new owner of the 1980s-era community intends to revert it to 100 percent rental.

This property proved the most challenging of the five to move, Kelleher revealed.

“This was a highly distressed condo, which was fractured in the ’80s,” he said. “It was 70 percent occupied and had significant deferred maintenance.”

On Tampa’s west side, the 40-unit Bayside North one- and two-bedroom garden-style property was acquired for $4.3 million. Previously a fractured condo, Bayside North is more valuable today as a 100 percent rental community, leading the seller to buy back the previously sold units.

Finally, the 46-unit, five- building Grove Court-Plant City property in Tampa changed hands for $1.9 million. The seller of the 36-year-old community is based outside Tampa, and the locally-based buyer was convinced he could improve the property’s cash flow through improved economies of scale.

“In 2015 we are definitely seeing an increase in 1031-exchanges. Investors are selling assets in other cities throughout the U.S. and deploying the capital into growth markets like Tampa,” Kelleher said. “The low interest rate environment is also helping to drive activity.”

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Tampa Multifamily Activity is on the Rise

Southeast-based Franklin St. is making waves in Tampa with the sale of five multifamily communities in five days for more than $50 million.

Franklin Street has closed the sale of five Tampa Bay multifamily communities in five days for more than $50 million. The buyers and sellers are private companies from the Tampa area and various locations throughout the U.S.

“In 2015 we are definitely seeing an increase in 1031-exchanges,” Kevin Kelleher, Franklin Street’s senior director in Tampa, told Commercial Property Executive. “Investors are selling assets in other cities throughout the U.S., and deploying the capital into growth markets like Tampa. The low interest rate environment is also helping to drive activity.”

The most expensive of the five deals, the Harbour Cay community, comprised of 276 one- and two-bedroom garden-style apartments in 17 two-story buildings at 12001 Belcher Road in Largo, was sold for $23.5 million.

The Park at Chesterfield, located at 5309 Chalet Court in Tampa, sold for $14.75 million. The 244-unit apartment complex includes two sparkling pools, a state-of-the-art fitness center, barbecue area, children’s playground and business center. The new buyer intends to implement an interior and exterior renovation plan to increase rents.

In a bulk condo deal, 353 units at University Oakwoods, a 450-unit community at 1250 E. 113th Ave., near the University of South Florida, were sold for nearly $7 million.

The 40-unit Bayside North community, comprised of a mix of one- and two-bedroom garden-style apartments at 5009 S. Westshore Blvd., sold for $4.3 million.

In the latest deal, the 46-unit Grove Court-Plant City community, located at 701 N. Mobley St., in Tampa, changed hands for $1.9 million. The five-building Grove Court community was built during the late 1970s.

“All of the deals present the investor with a value-add opportunity, which are becoming increasingly hard to find in this hot market,” Kelleher said. “We are very bullish on the Tampa market. The $2 billion commitment from Vinik and Cascade in downtown Tampa has spurred a firm belief in the future growth and value creation available in Tampa Bay.”

According to Kelleher, each of the multifamily communities involved are located in close proximity to Tampa’s major employment centers and have significant potential for rent growth and added value through capital improvements.

Franklin Street’s managing directors Darron Kattan and Robert Goldfinger and director Zachary Ames worked with Kelleher on all transactions.

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The Biggest Issue for Grocery Developers

ATLANTA—Specialty grocers are making a big impact on the commercial real estate market. How big? Bryan Belk, director of Franklin Street, discussed these realities in part one of our exclusive interview.

In this installment, he takes a deeper dive. Belk discusses the hottest markets in the Southeast for specialty grocer expansion, as well as the largest challenges for developers in this space and how sales trends will lean in the quarters ahead.

GlobeSt.com: What are the hottest markets in the Southeast for specialty grocer expansion?

Belk: Like most development in this market, we are seeing the expansion in the core markets like Atlanta, Charlotte, and Miami, but we are starting to see expansion into the secondary markets. Whole Foods and Sprouts are starting to open several locations in Alabama, for example.

GlobeSt.com: What are the biggest challenges for developers in this space?  

Belk: The biggest struggle developers are having is finding the right piece of land. Retail developers cannot afford the intown land costs, which is morphing a lot of traditional retail developers into mixed-use developers. This is causing a lot of retail developers to create a joint venture with an apartment group to bring in the apartment component to development sites to make the numbers work.

GlobeSt.com: How do you see sales trends leaning going forward?

Belk: Most of these tenants have garnered more attention than traditional grocers and we are feeling that in the cap rates we are seeing for the specialty grocers. Whole Foods and Trader Joe’s deals trade at the lowest cap rates in the low to mid-5% range, followed by Sprouts deals in the upper 5%range. With the very high sales per square foot, these tenants generate investors are fighting over the stable cash flow these anchors generate.

 

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Franklin Street expands with Reed

Franklin Street is expanding its multifamily investment sales division by adding James Reed as senior director. He will be based in the commercial real estate company’s Jacksonville office.

Reed has more than 20 years of experience. He previously was real estate director at the Florida Rock Division of Vulcan Materials, where he negotiated land acquisitions, commercial and industrial leases and marketed and sold surplus real estate.

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How Specialty Grocers Are Impacting CRE

ATLANTA—Over the past five years, the specialty grocery industry has grown steadily as rising disposable income levels and higher consumer spending have driven overall economic recovery. That’s according to research from IBIS World.

In the coming years, the industry is expected to continue expanding steadily. In fact, during the next five years as economic conditions improve and a greater share of Americans develop a taste for specialty, premium or all-natural foods, IBIS is reporting 3.6 percent annual growth over the next 10 to 15 years.

GlobeSt.com caught up with Bryan Belk, senior director of Franklin Street, to get his thoughts on the commercial real estate impacts of the market. He talked to us about the latest trends, site types and more in part one of this exclusive interview.

GlobeSt.com: What are the latest trends in the specialty grocery market as it relates to commercial real estate?   

Belk: The biggest trend we are seeing is that specialty grocers are being the catalyst for new in-town developments in major cities across the Southeast. Generally, when you are seeing site plans for major mixed-use developments these days it includes a Whole Foods, Sprouts, or another attractive grocer anchor. 

GlobeSt.com: What types of sites do these specialty grocers prefer? 

Belk: The products in these stores are typically higher-end, so we tend to see the locations in the most attractive demographics with the higher incomes and higher college educated populations. Because of their varying footprints, these tenants are able to get into a lot of spaces their competitors cannot. We are not seeing a lot of Publix’s smaller than their traditional 45,000-square-foot box and Kroger is expanding on their more than 100,000-square-foot locations.

GlobeSt.com: Most of the developers are private at this point. Do you expect more action from the REITs? 

Belk: No, I expect the growth to continue to be led by the private developers because they are a little more nimble. REIT development in this sector is more frequently re-development of older boxes into specialty grocers. A good example of this is Weingarten’s recent re-tenant of a Staples box with Fresh Market in Roswell, Georgia.

 

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