Tampa Sees Rare REO Multifamily Trade

TAMPA,FL—In one of a dwindling number of REO multifamily property deals, Julian Apartments has traded for a mere $610,000. The sale equals $16,486 per unit and $22.26 per square foot.

Kevin Kelleher, Darron Kattan, Bob Goldfinger, and Zach Ames, all of Franklin Street, represented both parties in the REO transaction. The seller, a national bank, foreclosed on the property in June of 2012. The buyer was a private local investor.

“REOs are winding down and expect to see the last of them this year,” Kelleher tells GlobeSt.com. “They are a much smaller part of our business—the past three years REOs were about 80% of our business while towards the end of 2012 they accounted for only about 20%.”

Built in 1984, Julian Apartments is located at 770 S. Main Street, Brooksville, FL. The multifamily asset offers 37 units in Hernando County. The property sits on more than 3.37 acres of land and is constructed of concrete block with pitched roofs. The units are individually metered for water and sewer with the city. There is also an on-site laundry facility.

“For this property, replacement cost is about $75 a square foot and it was sold for about $22 a foot,” Kelleher says. “This is a value-added deal with significant upside through hands-on management. I believe we are on the cusp of a full recovery and expect Tampa Bay to return to a normalized market in 2013.”