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TAMPA, FL—Cayman Islander, a vintage 1960 multifamily property in a strategic neighborhood, is getting a new lease on life. After sitting on the market for two years in the wake of foreclosure, two investors snapped up the distressed multifamily project with plans for a major rehab.

Located at 4205 S. Manhattan Avenue in South Tampa, Cayman Islander traded for $341,250. The sale price represents $14,218 per unit and $23 per square foot. The buyer will invest about $200,00 to renovate the distressed multifamily asset.

Kevin Kelleher, Darron Kattan, and Robert Goldfinger, all of Franklin Street, represented the buyer in the REO acquisition. The seller, a local bank, foreclosed on the property in September of 2010. The distressed multifamily asset, which includes 24 one-bedroom-one-bath units, sat vacant for three years.

“The property sold significantly below replacement cost which is about $60 to $80 per foot,” Kelleher tells GlobeSt.com. “The investor essentially got the property for the price of the land.”

The property was 100% vacant and boarded up at the time of sale. It closed within three days of contract execution in a sealed bid process. This was an all-cash transaction that sold as-is without an inspection period. But Kelleher says the property’s South Tampa location pushed the investors to present an offer with extremely strong terms they knew would be attractive to the bank.

“The bank struggled through the foreclosure as there were partnership issues between the owners,” Kelleher says. “The bank also sold during this time. It is now C1 and it was First Community Bank of America. This made for a complex foreclosure. We are seeing the last of multifamily REO deals. I expect the next wave to be the investors selling these type of properties once they are renovated and stabilized.”