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.