Vintage 1971 MF Wins $48,000 Per Unit

ORLANDO—Garden Isles Apartment Homes, a 300-unit multifamily complex in Tampa, FL, has traded hands. The sale price: $14.3 million, or about $48,000 a unit.

Marcus & Millichap vice president of investments Frank Carriera and first vice president of investments Michael Regan represented the seller, Garden Isles Management. The duo also secured the buyer, Blue Rock Partners.

 "The property is delivered free and clear, giving the new owner the option of placing new financing," says Carriera. "The buyer also has an opportunity to continue the asset's unit upgrade program and achieve a substantial increase to cash flow."

Built in 1971 on about 16.1 acres, the multifamily community is located at 6919 Bonair Drive. Multifamily units have balconies, central heating and air conditioning, gated access, covered parking spaces, 12 on-site laundry facilities, fitness center, two swimming pools and a dog park.

"Garden Isles Apartment Homes is centrally located in Tampa," says Regan. "Its proximity to major regional economic drivers, such as the University of South Florida, James A. Haley Veterans Hospital, Moffitt Cancer Center, Busch Gardens, and Seminole Hard Rock Hotel and Casino, position it well for future growth."        

Capital continues to flow into Tampa apartments, accelerating deal volume, according to Marcus & Millichap's fourth quarter 2015 report. Regional investors still dominate the market, although more national players are coming in to invest in larger assets in burgeoning Tampa and St. Petersburg urban core submarkets, the firm reports.

So far as predictions, M&M estimates developers will bring online 3,600 units this year, a dip from 4,400 rentals added in 2014. This year's total includes nearly 830 units in three projects in Central Tampa.

The vacancy rate, meanwhile, will fall 150 basis points in 2015 to 3.5%, the firm says, partly reflecting a pause in deliveries in the third quarter, and the average effective rent in Tampa will surge 8.1% in 2015 to $1,020 per month, surpassing the $1,000 mark for the first time. In 2014 renters paid $944 per month on average, a 5.7% increase.

But Tampa lawyer Ed Whitson a partner in the Tampa office of the Arnstein & Lehr law firm, tells GlobeSt.com this recovery may be shorter than previous ones: "In an economic cycle, you usually have a more gradual recovery rather than the spike that we're seeing now. With that in mind, I believe this up cycle will most likely be far more abbreviated than the last one."