"These were direct transactions with both deals taking about four months to complete, from contract signing to closing," Colliers-Seeley broker Herb Chase tells GlobeSt.com. "There were no special (environmental or zoning) challenges to overcome," since both properties were "fairly new", he says.
Chase says the deals came together solely from his team "staying in touch with the buyer and seller." Chase adds, "We represented both." Colliers-Seeley brokers Curtis Palmer and Alex Quintana worked with Chase on both deals.
European-American Realty of Atlanta, making its foray into Florida, paid Atlanta-based Lane Investment and Development Corp. an average $128,342 per unit for the total 561 apartment units.
In Tampa, the 240-unit, seven-month-old, 98%-leased Summer Walk at Westshore on West Spruce Street, directly across from the 1.2-million-sf International Mall, was sold for $28.5 million or an average $118,750 per unit.
In Atlanta's hot Central Perimeter submarket within Summit Park, the 321-unit, two-year-old, 100%-leased Summer Villa Apartments generated a price of $43.5 million, or an average $135,514 per sf, a number that is "probably above replacement cost but in a difficult location to reproduce," Chase tells GlobeSt.com. "The seller was very happy." The 5.5-acre complex also has 2,000-sf of ground-floor retail space.
He says the deals were done at this time because of favorable market conditions and the "excellent locations" of both properties. In Tampa specifically, "there aren't that many class A multifamily properties available" in the affluent Westshore submarket, the broker says. In Atlanta, Summer Villa Apartments is near medical office buildings, 20 million sf of class A office space and 10 million sf of retail in the Perimeter area, "a favorable factor" for landlords.
Summer Walk at Westshore rents average $1,195 per month, or about $1.29 per sf, for average living areas of 928 sf per unit in the one-, two- and three-bedroom apartments. The complex, started in May 2000 and completed in January of this year, has a separately connected 385-space parking garage.
Summer Villa Apartments rent for an average $850 to $1,650 per month, or about $1.20 per sf, and have average living areas of 924 sf per unit. Both properties are four-story structures.
Colliers-Steeley has completed $375 million in transactional volume this year, about twice the volume posted in 2003. "We expect to close $750 million by year end," Chase says.
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