Boston Area Firms Trade Tampa Multifamily for $59M

TAMPA—Two Boston-area based real estate investment firms have traded a 340-unit multifamily community here in northeast Hillsborough County.

Taurus Investment Holdings has acquired the Mezzo at Tampa Palms in the exclusive Tampa Palms community from Preston-Giuliano Capital Partners in a deal that calculated out to $173,529 per unit.

Luis Elorza, Brad Capas, Zachary Sackley, Robert Given and Michael Mulkern of Cushman & Wakefield’s Florida Multifamily Group represented Preston-Giuliano Capital Partners, which has operations in Cambridge, MA, Providence, RI and Sarasota, FL in the transaction.

Mezzo of Tampa Palms was developed in 1992 on a an approximately 22-acre site at 15210 Amberly Dr. The location is near some of Tampa’s largest employment centers, including the Interstate 75 office corridor, University of South Florida, Downtown Tampa and Westshore. The property is located on the northwest side of Bruce B. Downs Boulevard, which serves as a main thoroughfare in the area, providing exceptional access to abundant retail, dining and entertainment options, C&W notes.

Mezzo of Tampa Palms is a three-story, garden-style property comprising 20 residential buildings with a mix of one-, two- and three-bedroom floor plans. The average unit in the community is 1,193 square feet with an average market rent of $1,313. The community was above 95% leased at the time of sale.

Berkadia reported on Aug. 19 it had arranged $43.13 million in acquisition financing for Mezzo at Tampa Palms. Berkadia senior managing Ddrector Mitch Sinberg, associate director Matthew Robbins and senior analyst Wesley Moczul of Berkadia’s Boca Raton office secured the loan on behalf of Taurus Investment Management.

Freddie Mac originated a 10-year floating rate loan with partial interest only.

“After over a third of the units were renovated, the property exemplified proven value-add potential and upside with the opportunity to further the asset’s value with additional capital improvements,” says Berkadia’s Sinberg. “The Tampa MSA also continues to outperform other job markets nationwide, making it a favorite for multifamily investors.”

“The Tampa Palms submarket is very desirable for rental investors due to its preferred suburban lifestyle, excellent schools and immediate proximity to a broad range of employers concentrated along Interstate 75 and surrounding nearby University of South Florida,” says C&W’s Elorza.

Preston-Giuliano Capital Partners completed more than $3.4 million in capital improvements at Mezzo of Tampa Palms since 2015. Those modernizations included new roofs, a renovated clubhouse, exterior paint, poolside upgrades, the installation of LED lighting and a virtual gate system. They also upgraded approximately 30% of the unit interiors.

“An excellent location, proven upgrade premiums and a significant capital improvement investment by the seller combined to make Mezzo the ideal value-add investment opportunity,” said Cushman & Wakefield’s Capas.

Units at Mezzo of Tampa Palms offer nine-foot ceilings, built-in entertainment centers, enormous closets, fully equipped kitchens with microwaves and large pantries, the largest patios and balconies available in Tampa Palms, glass-enclosed showers and oversized soaking tubs, upgraded lighting and fixtures and washers and dryers. Select units feature garages with remote access; vinyl plank flooring; black or stainless-steel appliances; new, modern cabinet doors; quartz countertops; under-cabinet mounted lighting; recessed lighting with dimmers; modern subway-tile bathroom showers; and nine-inch deep kitchen sinks with sleek pull-out spray faucets.

Community amenities include a 7,000-square-foot clubhouse, a fitness center, a business center, Wi-Fi in community areas, two resort-style pools, a poolside outdoor kitchen with a fire pit, gated access with virtual guards, a dog park, a tennis court, a playground, a barbecue and picnic area, walking/jogging trails and a sun deck.