By Keith Loria
Franklin Street has closed the sale of five Tampa Bay multifamily communities in five days for more than $50 million. The buyers and sellers are private companies from the Tampa area and various locations throughout the U.S.
“In 2015 we are definitely seeing an increase in 1031-exchanges,” Kevin Kelleher, Franklin Street’s senior director in Tampa, told Commercial Property Executive. “Investors are selling assets in other cities throughout the U.S., and deploying the capital into growth markets like Tampa. The low interest rate environment is also helping to drive activity.”
The most expensive of the five deals, the Harbour Cay community, comprised of 276 one- and two-bedroom garden-style apartments in 17 two-story buildings at 12001 Belcher Road in Largo, was sold for $23.5 million.
The Park at Chesterfield, located 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 new buyer intends to implement an interior and exterior renovation plan to increase rents.
In a bulk condo deal, 353 units at University Oakwoods, a 450-unit community at 1250 E. 113th Ave., near the University of South Florida, were sold for nearly $7 million.
The 40-unit Bayside North community, comprised of a mix of one- and two-bedroom garden-style apartments at 5009 S. Westshore Blvd., sold for $4.3 million.
In the latest deal, the 46-unit Grove Court-Plant City community, located at 701 N. Mobley St., in Tampa, changed hands for $1.9 million. The five-building Grove Court community was built during the late 1970s.
“All of the deals present the investor with a value-add opportunity, which are becoming increasingly hard to find in this hot market,” Kelleher said. “We are very bullish on the Tampa market. The $2 billion commitment from Vinik and Cascade in downtown Tampa has spurred a firm belief in the future growth and value creation available in Tampa Bay.”
According to Kelleher, each 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.
Franklin Street’s managing directors Darron Kattan and Robert Goldfinger and director Zachary Ames worked with Kelleher on all transactions.