u201cThe sale of Tampa Pines is a very good representation of the current trend in today's market,u201d Zach Ames tells GlobeSt.com.

TAMPA, FL—Financing is playing a key role in multifamily transactions as the market becomes increasingly competitive. One recent example is the sale of Tampa Pines, an apartment community in Tampa, FL. The seller purchased the highly distressed multifamily asset at the beginning of 2013.

Franklin Street brokered the sale of Tampa pines for $1.056 million. The sale price represents $33,000 per unit, or $44.75 per square foot. Franklin Street’s Zach Ames, Kevin Kelleher, Darron Kattan, and Robert Goldfinger represented the seller, a local investor. The buyer is also a local investor with European equity.

“The sale of Tampa Pines is a very good representation of the current trend in today’s market,” Ames tells GlobeSt.com. “Sellers who purchased distressed assets during the downturn are now selling and realizing significant profits.”

In 2013, the seller invested capital into the property and upgraded all units, including new vinyl wood flooring, cabinets, and appliances. Additionally, the property received several exterior improvements including landscaping upgrades, window and door repairs, roof repairs, and stairwell renovation. After stabilization, the seller cashed in almost doubling their initial investment of $540,000.

“Lending also played an important role in this transaction and will continue to play a role in deals moving forward,” Ames says. “The buyer was a well-capitalized, first-time buyer of multifamily. Even 12 months ago this property would have struggled to secure financing but as the lending market continues to loosen and become more competitive, we are going to see the buyer pool expand while also becoming more competitive and ultimately pushing values higher.”

According to CoStar, multifamily lending has risen over 15% nationally. “The amount of commercial real estate loans overall continues to rise,” Danny York, president of Franklin Street Capital Advisors, tells GlobeSt.com. “Multifamily in particular has exploded in the last few months and becomes more crucial in a more-competitive real estate climate.”

Built in 1960 and 1963 Tampa Pines is a 32-unit apartmentcommunity located at 12908 15 Street in North Tampa. The property includes 11 buildings and is currently 93% occupied. Franklin Street recently 

Also on the distressed mutlifamily front, Franklin Street recently brokered the sale of Lexington Court, a once-distressed multifamily project in Tampa, FL. The $1.3 million sale price equals $30,952 per unit, or $52.01 per square foot—that’s double the purchase price.