TAMPA, FL—Palms at Brandon has been healed. The fractured condo project just traded for $10.825 million, or about $59,000 per unit.
The HFF Florida multi-housing group represented a private seller in the sale of the property to an affiliate of Tripointe Property Group, an Ohio-based investment group focused on acquiring value-add multifamily assets. HFF directors Matt Mitchell and Jaret Turkell, with help from real estate analyst Maurice Habif, led the transaction. Steven Soclof, CEO of Tripointe, negotiated the purchase on behalf of the buyer.
“The transaction was unique in that it was a fractured condo, but to maximize value and to ensure that the property could quality for agency financing the previously sold condo units were acquired before the closing and the project was sold as 184 continuous units,” Mitchell tells GlobeSt.com. “That required some creative modeling of the cash flows and we had to articulate to the market this complicated process of healing the fracture of the condo.”
Palms at Brandon sits on 11.6 acres near the Westfield Town Center in Brandon, a growing bedroom community of Tampa, FL. Constructed in the 1970s, the property had been converted to condominiums in 2005, although no units are separately owned. The property offers one and two bedroom multifamily units, as well as two-story townhome units. The multifamily asset is about 95% occupied.
“There’s a trend of these buyers moving up the risk spectrum into these value add deals where they can get a little it higher yield,” Mitchell says. “On this deal and other deals that we are marketing, we are seeing a slew of new capital sources targeting the Tampa Bay market. We are seeing groups from all over the country and particularly in this value add space.”