TAMPA, FL—Twice the purchase price. That’s the story behind the sale of Lexington Court, a once-distressed multifamily project in Tampa, FL. The $1.3 million sale price equals $30,952 per unit, or $52.01 per square foot—that’s double the purchase price.
Kevin Kelleher, Darron Kattan, Robert Goldfinger, and Zach Ames, all of Franklin Street, represented the seller Avesta Communities, a Tampa multifamily investment and management firm. The all-cash buyer is a private international investor from South America.
“Avesta Communities acquired the property for $600,000 back in April of 2012,” Kelleher tells GlobeSt.com. “Throughout the last few years, they have significantly renovated the property and stabilized its operations. Through these efforts, they were able to sell the property for more than twice their purchase price and realized a significant return on investment.”
Avesta put money into the distressed multifamily asset before putting it back on the market. Multifamily renovations included new landscaping, exterior painting, roof and gutter repairs, and interior upgrades including new appliances and equipment.
“We continue to see sellers of previously-distressed properties taking profits in the robust market we are in,” Kelleher says. “Equity from around the world is entering the Florida real estate market. Foreign investors view Florida as a safe harbor when compared to their country of origin which is experiencing higher levels of economic uncertainty.”
Located at 11738 North 14 Street, Lexington Court is in North Tampa’s University of South Florida (USF) submarket of North Tampa. The multifamily property sits near Veterans Memorial Hospital, Busch Gardens, and University Mall and spans 21 concrete block duplexes situated on 2.46 acres of land.
“The Northeast submarket near USF has seen significant stabilization over the last 24 months,” Kelleher says. “Twelve months ago, there were still dozens of foreclosures and now we have a handful left.”
