TAMPA, FL—Financing is playing a key role inmultifamily transactions as the market becomesincreasingly competitive. One recent example is the sale of TampaPines, an apartment community in Tampa, FL. Theseller purchased the highly distressed multifamilyasset at the beginning of 2013.

|

Franklin Street brokered the sale of Tampapines for $1.056 million. The sale price represents $33,000 perunit, or $44.75 per square foot. Franklin Street's ZachAmes, Kevin Kelleher, DarronKattan, and Robert Goldfinger representedthe seller, a local investor. The buyer is also a local investorwith European equity.

|

“The sale of Tampa Pines is a very good representation of thecurrent trend in today's market,” Ames tells GlobeSt.com. “Sellerswho purchased distressed assets during thedownturn are now selling and realizing significant profits.”

|

In 2013, the seller invested capital into the property andupgraded all units, including new vinyl wood flooring, cabinets,and appliances. Additionally, the property received severalexterior improvements including landscaping upgrades, window anddoor repairs, roof repairs, and stairwell renovation. Afterstabilization, the seller cashed in almost doubling their initialinvestment of $540,000.

|

“Lending also played an important role in this transaction andwill continue to play a role in deals moving forward,” Ames says.“The buyer was a well-capitalized, first-time buyer ofmultifamily. Even 12 months ago this propertywould have struggled to secure financing but as the lending marketcontinues to loosen and become more competitive, we are going tosee the buyer pool expand while also becoming more competitive andultimately pushing values higher.”

|

According to CoStar, multifamily lending hasrisen over 15% nationally. “The amount of commercial realestate loans overall continues to rise,” DannyYork, president of Franklin Street CapitalAdvisors, tells GlobeSt.com. “Multifamilyin particular has exploded in the last few months and becomes morecrucial in a more-competitive real estate climate.”

|

Built in 1960 and 1963 Tampa Pines is a 32-unitapartmentcommunity located at 12908 15 Street inNorth Tampa. The property includes 11 buildings and is currently93% occupied. Franklin Street recently

|

Also on the distressed mutlifamily front, Franklin Streetrecently 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 $52.01per square foot—that's double the purchase price.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.