Atlanta Owner Brings 2,284 Apartments to Market for $129M

The asking price is $129.2 million or about $56.57 per unit, a figure local are construction sources say is about half of current replacement cost for comparable properties. The apartments are in Tampa, St. Petersburg, Clearwater, Bradenton, Winter Haven, Lutz and Largo.

Pinnacle decided to sell at this time because "the properties' performance is excellent and the transaction market offers ownership an opportunity to capitalize on a large number of investors seeking apartment properties in the Greater Tampa Bay market," Byron Moger, a senior director in Cushman & Wakefield's Tampa office, tells GlobeSt.com.

Moger and Cole Whitaker, a senior director in the Apartment Group in Orlando, a Cushman & Wakefield, division, are marketing the portfolio to US, European, Asian and Central America investors. The sealed bid offers are due May 25.

The portfolio is being sold as a single block but buyers can acquire single properties as well. Moger, however, anticipates "the properties will sell as a portfolio." The broker says that although it is not the largest disposition of multifamily properties in Florida in recent years, it is the largest coming to market so far this year.

He anticipates a fairly quick sale because the properties are priced below replacement cost and there are local barriers to entry for comparable new product. "The average cost of new multifamily construction exceeds $90,000 per unit along the central region of Florida's Gulf Coast," according to a flyer prepared by Moger and Whitaker.

Additionally, Florida's concurrency legislation has caused land prices and impact fees to "rise dramatically," the flyer states. "The lack of available quality apartment sites along this area of Florida's Gulf Coast creates an irreplaceable value on the infill locations of the Tampa Bay area portfolio."

The portfolio comprises Sweetwater Cove, 5430 Gingercove Dr., Tampa, 288 units, 94% occupied, listed at $20.5 million with a cash cap rate of 6.75%; Livingston Place, 15215 Livingston Ave., Lutz, 172 units, 96% occupied, listed at $10.73 million, cap rate 6.75%; Park Trace Apartments, 501 Fairwood Ave., Clearwater, 188 units, 89% occupied, listed at $20.36 million, cap rate 6.75%; Lantana Apartments, 530 Fairwood Ave., Clearwater, 184 units, 89% occupied, listed at $20.36 million cap rate 6.75% (Park Trace and Lantana are being sold as a single entity); Somerset Apartments, 1200 Vonn Rd., Largo, 384 units, 93% occupied, listed at $20.94 million, cap rate 6.75%; Emerald Pointe, 111-73rd Ave. North, St. Petersburg, 441 units, 93% occupied, listed at $24.58 million, cap rate 6.75%; Sailwind at Lake Deer, 350-24th St. NW, Winter Haven, 368 units, 99% occupied, listed at $17.61 million, cap rate 6.75%; the Gates at Bradenton, 4515-26th St. West, Bradenton, 259 units, 96% occupied, listed at $14.48 million, cap rate 6.75%.