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.”