Tampa Distressed Assets Seeing Strong ROI

TAMPA, FL—It was the first sale of a pre-2000 construction property in the University of South Florida submarket to trade for more than $30,000 per unit in more than five years. The Camelot Apartments shows a future trend in the Tampa class C multifamily market, according to Franklin Street's Kevin Kelleher.

Franklin Street brokered the sale of the multifamily community for $732,000. The sales price represents $34,857 per unit and $46.62 per square foot. It is 95% occupied. Kelleher, along wit his Franklin Street associates Darron Kattan, Robert Goldfinger, and Zach Ames, represented the seller in the transaction. Both parties are out-of-state investors.

“Stabilized C class sales like the Camelot Apartments have trailed the A and B class in velocity over the last year,” Kelleher tells Globest.com. “The main cause of this lag is the lack of financing for the lower asset class. That said, we believe financing will become more fluid in the next 12 months and the higher yields coupled with leverage at today's low rates will increase values and transactions of stabilized product in the C class space.”

Built in three phases during 1968, 1973, and 1978, Camelot is located at 13135 N. 19th St. The multifamily community offers 700-square-foot, 725-square-foot, and 875-square-foot units, which have all been upgraded in the past two years.

“There is a shortage of quality product in the marketplace,” Kelleher says. “Investors who purchased distressed assets like this over the last few years and began infusing capital and leasing the property, can now sell and gain an attractive return on investment. Camelot is a perfect representation of a stabilized sale in Tampa's C Class market and is a projection of what it will look like moving forward.”