TAMPA, FL-A private local investor has acquired Reflections, a264-unit apartment complex in Carrollwood, for $13 million. Theseller was Jackson Square Properties, a San Francisco-basedprivately-held real estate operating company.

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Sean Lance, managing director and president of the TroubledAsset Optimization practice at NAI TampaBay, tells GlobeSt.com the$13 million price tag is in line with other class B and class Cmultifamily projects in the Tampa Bay area.

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“This sale is part of the year-end flurry of multifamilyactivity that we typically see,” Lance says. “Investors are tryingto get deals done and banks are trying to get deals off theirbalance sheet. We have a number of closings lined up in the lastdays of 2010.”

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Kevin Judd, Patrick Dufour, and Dick Donnellan of Atlanta-basedARA, a full-service investment advisory brokerage firm, representedthe seller in the transaction. Reflections has averaged occupancyrates well over 90% for the past three years in one of the mostmature, desirable Tampa submarkets.

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“The buyer is very familiar with the Tampa market and ownsseveral properties in the immediate area,” says Dufour, ARAFlorida's Tampa-based vice president. “They believe in Tampa’sunderlying fundamentals long-term and see significant upside in themarket in the near term.”

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Built in 1982, Reflections offers a mix of one- and two-bedroomfloor plans with an average unit size of 729 square feet. JacksonSquare Properties upgraded several unit interiors and is seeingrent premiums for those units.

“Reflections at Carrollwood provides the buyer with excellentin-place cash flow and the ability to increase rents throughoverall market recovery and continuing the interior upgradeprogram,” says Judd, ARA’s Orlando-based principal. “The buyer hadto assume two loans from Fannie Mae, both with favorableinterest-only financing,”

Reflections is located in the heart of the Carrollwood submarket,with access to major employment centers, shopping and entertainmentvenues. Individual units at the property featurefully-equipped kitchens, walk-in closets, screened patios orbalconies and additional storage. Community features includeclubhouse, pool, fitness center and business center.

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“There’s no shortage of money chasing deals right now,” Lancesays. “We’ve also had some apartment developers starting to sniffaround recently. In the second half of 2011 you might see some landsales for apartment development. But there are still plenty ofdistressed deals that have a lot of hair on them from deferredmaintenance and mismanagement to wade through.”

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