TAMPA, FL—In an Internet-based auction following a 2011 foreclosure, The Cove has sold for $50.5 million. Philadelphia-based Lubert-Adler acquired the Tampa, FL waterfront multifamily community in a joint venture with Lamar Group.
LNR Property auctioned the multifamily asset. The previous owner had planned a condo conversion. Laramar, which manages about 3,500 multifamily units across Central Florida, owned Cove from 1999 to 2005. The new owners have commissioned Laramar to manage the property.
Cove seems to fit nicely into Lubert-Adler’s acquisition strategy. The firm, which invests on behalf of leading national university endowments and state retirement systems, is focused on creating “significant” current cash yield from mid-market size rental assets through value-add executions.
“We seek to achieve superior risk-adjusted returns for our investors by acquiring and renovating multifamily assets that can generate a substantial portion of the returns from current cash flow,” says Dean Adler, CEO and cofounder of Lubert-Adler. “Our goal is to execute that strategy in top-tier submarkets of major cities with local experts.”
Built in 1980, Cove has a waterfront location on Tampa Bay, with a swimming pool, clubhouse, and sundeck overlooking the water. Residents can walk, run, or bike historic Bayshore Boulevard, the bay’s longest continuous sidewalk.
Location-wise, Cove is near Interstate 75, Downtown Tampa, and Tampa International Airport. The Tampa Aquarium, cruise ship terminal, and spring training camps for several major league baseball teams are also nearby. Cove offers discounted rental opportunities to members of the military stationed at nearby MacDill Air Force Base, which employs more than 18,000 people.
“The Cove represents another opportunity for us to execute [our] strategy,” says Adler. “We are partnering with Laramar, a best-in-class firm, which has superior local knowledge due to its long-term management and previous ownership of the property.”
Laramar will oversee a $3 million repair and renovation program. Last updated in 2003, the property’s clubhouse will be upgraded with a Wi-Fi lounge, business center, and improvements to the fitness center and clubroom. The existing tennis and racquetball courts will be converted into an outdoor recreation area with a large dog park.