TAMPA, FL—Tampa Pines, a multifamily community in Tampa, FL has traded hands. The sale price of $540,000 represents $16,875 per unit and $22.73 per square foot.
The seller, a national bank, foreclosed on the property in 2012. The buyer is a private investor out of Tampa. Franklin Street's Zach Ames, Kevin Kelleher, Darron Kattan, and Robert Goldfinger represented both parties for the REO transaction.
“Tampa Pines is a prime example of the demand for distressed assets,” says Ames. “We received more than 20 offers, 10 of which were at or above asking price. As the bank-owned inventory continues to dwindle, investor demand continues to be strong for distressed assets, which is driving pricing. Investors continue to search for value-added opportunities which are becoming scarce in today's market.”
The price-per-unit sales price reflects the distressed nature of the asset, which was 50% occupied at the time of sale. Ames believes the purchase of Tampa Pines provided a strong opportunity for this investor to acquire a distressed bank-owned property with high value-added potential.
“We are returning to a normalized market and the bank-owned distressed assets will account for less than 25% of our business this year whereas last year it accounted for almost 50%,” says Ames. “As we work our way back to a stabilized market, debt will start to become more fluid in 2013 which will have upward pressure on pricing and greatly expand the buyer pool.”
Built in 1963, Tampa Pines is located at 12908 North 15 Street. The property includes seven buildings situated across two acres with four single-story duplexes including eight one-bedroom, one-bathroom units.
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