Tampa, Fla.—Franklin Street has announced the sale of two North Tampa area apartment communities, Sandanay and Stonehenge Apartments, for a price of $3.05 million, which corresponds to $35,500 per unit and $39.97 per square foot.
Franklin Street, consisting of Kevin Kelleher, Darron Kattan, Robert Goldfinger and Zach Ames, represented a local investor in the transaction and Danny York with Franklin Street Capital Advisors structured the debt for the buyer, a South Florida investor, while Franklin Street’s Insurance division provided the policy.
“Our truly holistic approach to client services provides an unmatched advantage and value to our clients that no other commercial real estate company is able to offer,” York says.
The new owner intends to invest in several interior and exterior improvements to the properties in order to increase rents.
“This sale shows the continued trend of South Florida buyers making a significant push into our market,” Kelleher says. “We believe this trend will intensify into next year as the search for yield continues.”
The pair of communities, constructed between 1967 and 1970, are located at 13132 N. 19th Street and 13136 N. 20th Street in Tampa and are in close proximity to several large employment centers including the Veterans Hospital and the University of South Florida, which has a total enrollment of more than 50,000 students. The properties are also located near Interstate 275, providing convenient access to downtown Tampa.
Tampa’s exceptional job growth is fueling a building and buying boom in the market. According to a Q2 2014 Marcus and Millichap market report for the Tampa metro area, employers were expected to create 33,500 jobs in the area in 2014, expanding payrolls by 2.8 percent from the previous year’s 30,000. The report also notes that other factors, such as a decline in homeownership, are contributing to a larger pool of renters in the market and investors are taking notice.
“C-class apartments have not seen the same robust lending that A- and B-class products have had over the last few years,” Kelleher says. “We see that trend starting to change and with continued economic growth, we foresee significant value appreciation potential in C-class Florida apartments.” View PDF