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Tampa Community Commands $13M

Excerpted from Multi-Housing News story.

Franklin Street has brokered the sale of Heritage at Tampa Apartments, a 110-unit community in Tampa, Fla. According to Yardi Matrix data, TLR Group purchased the asset from Axonic Properties, paying $13.1 million or $119,090 per unit. Prudential Financial originated a $10.5 million Freddie Mac loan for the acquisition, set to mature in 2029. Franklin Street represented both buyer and seller in the transaction and will provide property insurance for the new owner.

Located at 7011 San Ramon Place, Heritage at Tampa Apartments is near Hillsborough River, between Interstate 75 to the east and Interstate 275 to the west. Downtown Tampa is roughly 8 miles away and Tampa International Airport is within a 30-minute drive.

The community encompasses 15 two-story buildings constructed in 1969 on a 7.8-acre site. The unit mix features two- and three-bedroom floorplans ranging from 995 to 1,776 square feet. Community-area features include a resort-style swimming pool, spa, fitness center, clubhouse and 240 parking spaces. As of April, the property was 97.3 percent occupied, Yardi Matrix shows.

Managing Directors Darron Kattan and Robert Goldfinger, together with Senior Directors Kevin Kelleher and Zachary Ames of Franklin Street’s Tampa multifamily investment sales team represented both parties in the transaction, while Senior Director Lonnie Kitchen of Franklin Street Insurance Services will insure the asset for the new owner.

For full story, visit https://www.multihousingnews.com/post/tampa-community-commands-13m/

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Franklin Street Closes $7 Million Tampa Rental Community Sale

Franklin Street has negotiated the sale of Rivergate Apartments, a 116-unit rental community located at 7702 Rivergate Drive in Southeast Tampa.  Darron Kattan, Kevin Kelleher, Robert Goldfinger and Zach Ames with Franklin Street’s Tampa multifamily investment sales team represented the seller, 7702 Rivergate, LLC, and the buyer, Rivergate Multi Housing, LLC, both private investors, in the $7 million transaction. The property has an existing Land Use Restriction Agreement (LURA) that will expire within the next 12 months.  The Palm Beach, Fla.-based buyer plans to significantly renovate Rivergate Apartments, while maximizing its income potential when the LURA restrictions expire.  

“This sale indicates the tremendous level of demand for workforce housing in the Tampa Bay area,” said Kattan, managing director for Franklin Street.  “The affordable housing component attracted a great deal of investor attention, both from groups looking to keep the land use restrictions in place and take advantage of tax and financing incentives, and from groups looking to convert the property to market rate deals.” 

“The LURA gives the buyer a unique opportunity to reposition a property that is currently restricted but soon won’t be,” said Kelleher, senior director for Franklin Street.  “Rivergate’s excellent location in a housing constrained submarket ensures that the new owner will not have challenges in keeping the community at full occupancy.”  

Built in 1975, Rivergate Apartments is conveniently located off the Lee Roy Selmon Expressway and State Road 60. The property is minutes from downtown Tampa and offers easy access to nearby shopping, dining and entertainment. 

About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street 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 – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at FranklinSt.com.

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Polk County/I-4 Corridor Industrial Fast Facts: May 2019

Industrial Fast Fact Polk County / I-4 Corridor Florida
Source: CoStar

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Franklin Street Closes $7M Sale of Apartment Community in Tampa, Florida

Franklin Street has negotiated the sale of Rivergate Apartments, a 116-unit rental community located at 7702 Rivergate Drive in Southeast Tampa.  Darron Kattan, Kevin Kelleher, Robert Goldfinger and Zach Ames with Franklin Street’s Tampa multifamily investment sales team represented the seller, 7702 Rivergate, LLC, and the buyer, Rivergate Multi Housing, LLC, both private investors, in the $7 million transaction. The property has an existing Land Use Restriction Agreement (LURA) that will expire within the next 12 months.  The Palm Beach, Fla.-based buyer plans to significantly renovate Rivergate Apartments, while maximizing its income potential when the LURA restrictions expire. 

“This sale indicates the tremendous level of demand for workforce housing in the Tampa Bay area,” said Kattan, managing director for Franklin Street.  “The affordable housing component attracted a great deal of investor attention, both from groups looking to keep the land use restrictions in place and take advantage of tax and financing incentives, and from groups looking to convert the property to market rate deals.”

“The LURA gives the buyer a unique opportunity to reposition a property that is currently restricted but soon won’t be,” said Kelleher, senior director for Franklin Street.  “Rivergate’s excellent location in a housing constrained submarket ensures that the new owner will not have challenges in keeping the community at full occupancy.”

Built in 1975, Rivergate Apartments is conveniently located off the Lee Roy Selmon Expressway and State Road 60. The property is minutes from downtown Tampa and offers easy access to nearby shopping, dining and entertainment.

About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street 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 – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide. Learn more about Franklin Street at FranklinSt.com

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Exclusive: New York company reportedly interested in new Sanford space

Excerpted from Orlando Business Journal story.

A water equipment and service provider — which employs 17,000 people worldwide — reportedly is hunting for space in a 67-acre industrial development under construction.

Rye Brook, New York-based Xylem Inc. (NYSE: XYL) wants 70,000 square feet of industrial space in the NorthPort Industrial Park in Sanford, sources told Orlando Business Journal. It’s unknown if a deal has been signed. The tenant would be among the first in the industrial park where Indianapolis-based Scannell Properties LLC is the developer.

Xylem reported $5.2 billion in revenue in 2018 and sells equipment to address the world’s “serious water challenges,” according to public documents. The company has multiple locations in Florida, including at 2152 Sprint Blvd. in Apopka.

Executives with Xylem and JLL (NYSE: JLL), which is marketing the property, couldn’t be reached for comment. Wilson McDowell, managing director with JLL, is marketing the property along with Managing Director Matt Sullivan and Senior Vice President Bobby Isola.

Scannell Properties LLC expects to build 809,700 square feet of industrial space in eight buildings on the northeast corner of North White Cedar Road and Narcissus Avenue. Construction has started for the project’s first phase, which includes 265,000 square feet of industrial space in three buildings, as previously reported by OBJ. Construction on the first phase is expected to wrap up in late 2019.

Scannell Properties bought the property for $10.1 million on Jan. 16, according to Seminole County records. Rand Yard Farms LLC was the seller.

The project’s estimated cost is $52.6 million and it may generate dozens of temporary construction jobs, in addition to full-time jobs.

The property is attractive to users due to the growth of State Road 429, which will allow trucks to bypass the heavy construction on Interstate 4, said Larry Kahn, senior director industrial with Tampa-based Franklin Street, who isn’t involved with the deal. Sanford’s workforce and housing also are attractive to new industrial users. “It’s a logical place.”

For full story, visit https://www.bizjournals.com/orlando/news/2019/05/29/exclusive-new-york-company-reportedly-interested.html

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Orlando Industrial Fast Facts – May 2019

No alt text provided for this imageSource: CoStar

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Risk Management Tips for Affordable Housing Developers, Owners & Investors

Michael Shadeed, Director for Franklin Street Insurance Services, is a nationally recognized expert in risk management, service, brokerage placement, and program administration for the commercial real estate industry.  He recently answered some frequently asked questions on how specialized insurance services can reduce the inherent risks associated with the affordable housing sector.

1. Are there any unique risks or complex insurance coverage needs that real estate owners, developers, investors and managers should be aware of concerning affordable housing?  

Yes, these risks involve Low-Income Housing Tax Credits (LIHTC) first party insurance or tax credit recapture coverage.  It provides indemnification for tax credits that are wholly or partially unavailable at the end of the year.  Coverage for loss includes interest or penalties assessed by the Internal Revenue Service on recapture amounts.  Also, LIHTC Professional Liability Insurance is a stand-alone professional liability policy that responds to the ownership structure of LIHTC real estate developments and provides indemnity coverage for damages the limited partner(s) incurs as a result of an error or omission of a general partner.  A standard indemnity and defense policy will offer coverage for third party claims alleging negligence available to all insured partners. Damages could include loss of LIHTC, as well as interest or penalties assessed by the IRS on recapture amounts.

2. What role does risk management play in the success of an affordable housing project?
Due to the high degree of compliance within this space, we view the affordable housing and tax credit industry as an industry vertical that pays a high level of attention to life safety and deferred maintenance issues.  Our biggest impact from a risk management standpoint is the relationship with tenants and improved safety at locations.

3. What are some potential underwriting issues that policyholders need to consider when evaluating insurance programs?
First, you should ask whether this carrier specifically accepts your type of affordable or tax credit housing.  Many carriers have warranties and exclusions on their policies for a percentage of affordable or tax credit housing per location.  The quality of security and attending to a safe tenant base is also a major factor.  

4. Share an example of how an affordable housing project can benefit from a custom insurance solution.
We have manuscript coverage within our property policies, specifically written to include coverage or conditions not included in a standard policy.  These types of policies cover the loss of tax credits due to a covered cause of loss, as well as the coverage for recaptured tax credits in arrears at the time of assessment.  This coverage complies with state laws and allows for the mortgage of the loan plus equity to be insured, above and beyond the replacement cost value of the asset.  

5. How can commercial property owners mitigate risks associated with non-compliance of tax credit rules and regulations related to Low-Income Housing Tax Credits?  
There is a significant difference between non-compliance to lose tax credits and losing them because your units are not rentable at the beginning of the year when tax credits are assessed.  Non-compliance exposure is when your organization is negligent in their professional duties and is an errors and omissions (E&O) insurance exposure.  Professional lines insurance coverage is very expensive.  You can lose tax credits due to a covered cause of loss, this is covered in the business income and extra expense exposures.  We typically use a manuscript policy form that covers this issue for our clients.

Michael Shadeed is a Director for Franklin Street Insurance Services. He can be reached at Michael.Shadeed@franklinst.com.

 
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Tampa’s Westshore Marina District has sparked an apartment boom nearby

Excerpted from Tampa Bay Times story.

TAMPA — Where developers dare to tread, other developers soon follow.
As hundreds of apartments begin to fill in the new Westshore Marina District, another apartment boom is underway south of the district along West Shore Boulevard. A Swedish investment group broke ground this week on a 444-unit community near the Port Tampa City Library. The nearby 192-unit Harbour at Westshore is almost finished. And construction of 585 units is underway at Bowery Bayside. 

The flurry of work reflects the success of the Marina District and demand for rentals convenient to downtown Tampa and MacDill Air Force Base. 

“The Marina District has had a challenging path through the Great Recession but now that it’s turned the corner and coming alive as a mixed-use district, it is not surprising to see more development happening in the immediate area,” said Darron Kattan, an expert on multi-family housing for the brokerage Franklin Street. “It’s difficult to be a pioneer but settlers are plentiful.”

For full story, visit https://www.tampabay.com/business/tampas-westshore-marina-district-has-sparked-an-apartment-boom-nearby-20190524/

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May 2019 Dealmaker Databank

Excerpted from May 20, 2019 issue of Crittenden Report.

Franklin Street Capital Advisors
1311 N. Westshore Blvd., Suite 200, Tampa, FL 33607
Ben Miller, Director, Loan Origination
Casey Siggins, Director, Loan Origination
(813) 839-7300
ben.miller@franklinst.com; casey.siggins@franklinst.com

Franklin Street arranges a short-term construction loan for Vertex Apartments, a 138-unit student housing asset located in Tallahassee, Fla. The sponsors are experienced student housing owners and operators, which allowed Franklin Street to obtain a high LTC solution for an out-of-market sponsor. The loan closed in less than three weeks from application.

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Franklin Street Awarded Leasing of former Times building in St. Petersburg

Excerpted from St. Petersburg Catalyst story.

The old Times building, acquired by Texas-based Lincoln Property Company in 2018 is under new management. Franklin Street has been appointed leasing agent of the Class A office space. The three-building, 239,585-square-foot facility consists of three buildings and houses the Tampa Bay Times, L3 Commercial Aviation Solutions, Penny Hoarder publisher Taylor Media and the Bank of the Ozarks.

For full story, visit https://stpetecatalyst.com/zaps/franklin-street-awarded-leasing-of-former-times-building-in-st-petersburg/