TAMPA, FL-California-based investor JEM Realty Advisors has acquired the 369-unit Remington Apartments at 10610 30th St. North for $21.2 million, or $57,452 per unit.
Holliday Fenoglio Fowler, LP directors Jason Nettles and Ike Ojala represented the sellers in the transaction, Des Moines-based BMA Capital LLC. The property was purchased free of existing debt. Nettles tells GlobeSt.com that two factors were behind the sale: the strength of the Tampa multifamily market and the prominent location of the property. "With focus on strong rent growth in the Tampa apartment market, HFF was able to execute this transaction in spite of the rising insurance costs in Florida," Nettles says.
The property, between Fowler Avenue and Busch Boulevard, is 95% occupied. The property has one-, two- and three-bedroom units that average 967 sf in size. Community amenities include a fitness center, sand volleyball court, business center and three swimming pools. "The Remington Apartments is a great value-add investment with significant upside potential through minor exterior work and unit upgrades," Ojala says.
Nettles says JEM plans to spend approximately $5,000 per unit on capital improvements. "It was a typical value-add transaction in a tight market," Nettles says. "The property needs some work, but I think you can increase rents with the improvements planned for the property." This is the latest acquisition by JEM Realty Advisors in recent years. In 2005, the company bought the 272-unit Cypress Springs in Orlando for $8.1 million.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.