Bank Owned Condo Conversion Trades for $4M

TAMPA, FL-Gables at Temple Terrace apartments has traded for $3.85 million, or about $40,000 per door. The property, which is located in the Tampa suburb of Temple Terrace, is vintage 1972.

Kevin Kelleher, Robert Goldfinger, and Darron Kattan of Franklin Street Real Estate Services represented both parties in the transaction. Coral Gables-based MCNA Properties sold the multifamily asset to a Chicago-based investor.

“Gables of Temple Terrace was a failed condo conversion which got started at the tail end of the conversion bubble,” Kelleher tells GlobeSt.com. "The sale in September of 2007 was for $8.86 million. It was to receive a major renovation that never got completed by the condo developer."

Like many condo projects in 2009, The Gables at Temple Terrace saw no sales volume and converted the units into apartments. But the buyer, Kelleher explains, has a track record of identifying REO opportunities among Florida’s decreasing inventory of distressed property and obtained bridge financing to close the deal.

“After the property was taken back through foreclosure the lender decided to finish the renovation and lease up the vacant property,” Kelleher says. “Over the last three years the lender completed the construction and leased the property up to 75% at the time of sale. In our opinion the new buyer purchased the property for approximately 35% to 40% of the lenders all in cost.”

Located at 11050 Le Jardin Circle, the asset was renovated between 2007 and 2009. It is built of concrete block with six two-story buildings. The property also has two other buildings, one is being used as a day care and the other building is the clubhouse/laundry facility. Every unit has been completely remodeled with new drywall, fixtures throughout and A/C handlers along with stainless steel appliances, granite counter tops and wood cabinets.

 “The buyer intends to focus on marketing the new sleek look and feel of the units, improve operations, and to raise NOI,” Kelleher says. “Though in very good condition for its age, the property was approximately 75% occupied at closing.”