Costa del Sol, located at 7700 Ridge Road in Seminole, was built in 1972 and contains both one- and two-bedroom rental apartment units. Merecorp is seeking a 1031 exchange property with the proceeds of the sale.
Tampa-based Supertest, which operates gasoline convenience stores within the Southeast, sold 10 properties earlier this summer and used those funds to acquire Costa del Sol through a tax-deferred 1031 exchange. Merecorp, also based in Tampa, bought the property in 2000 for $4.7 million, or $32,600 per unit, according to Pinellas County property records.
John Burpee, president of NAI Tampa Bay and the lead broker on the deal, says the transaction reflects a "significant turning point" in the local multifamily market regarding price and deal structure. "The buyer purchased the property as the result of the 1031 exchange for all cash and was looking to maximize cash flow with a stable quality investment," he says.
Burpee adds that Costa del Sol marks NAI Tampa Bay's seventh closing over the past year of apartment properties with more than 100 units. The firm claims 25% market share locally.
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