Bella Vista on Lake Seminole LLC paid Sailwinds on Lake Seminole Ltd. $11.8 million, or $61,458 per unit, for the Sailwinds property at 10240 Sailwinds Blvd., North Largo. Madison Glen Real Estate LLC paid Madison Glen Investments LLC $4 million, or $29,630 per unit, for the five-story, 121,888-sf concrete-constructed building on a 5.2-acre site at 701 Madison Ave., South Clearwater.
Stone, a senior investment broker, tells GlobeSt.com both properties are scheduled for condominium conversion by their new owners. The Sailwinds property comprises 16 two-story, garden-style buildings, two pools, a fitness center, two laundry facilities, picnic area, car wash area, dock and two clubhouses. "The property was bought as a condo conversion due to its location and unit mix," says Stanton, a multi-tenant properties specialist.
Sailwinds was on the market for seven months; Madison Glen was on the market for six months. The Sailwinds deal took 90 days to complete, from contract signing to closing. Madison Glen took 60 days to do. Both deals were done at this time to take advantage of the strong condo conversion market, Stone tells GlobeSt.com.
"The apartment investment market [in the Tampa Bay area] is red hot but difficult for investors to compete with the condo converter," Stone says. "For the past five years, buyers have outnumbered sellers 100 to 1."
The broker tells GlobeSt.com, "In most cases, the older properties are still being sold well below replacement value. As an example, the typical '70s vintage property is selling in the range of $35,000 to $55,000 per unit, which is 30% to 50% below replacement value."
Additionally, Stone says "all the economic indicators suggest that the Tampa Bay apartment rental market is making a rapid recovery from its low point in March 2003 when it was reported to have a vacancy of 5.74% and average rent of $717 per month to now when it is reported to have a 3.91% vacancy and average rent of $764 per month."
The broker says this is the third straight quarter "in which the indicators have been positive."
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