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.”