Thank you for sharing!

Your article was successfully shared with the contacts you provided.

TAMPA, FL-After many months of slowed activity due to tough financing and cautious buyers, it appears sales of apartment complexes are picking up again in the second half of this year. CB Richard Ellis reports that the number of transactions in the Tampa Bay market totaled six over the past two months, nearly matching those recorded through the first six months of 2009.

The latest transaction involves the $23.5-million sale of Three Palms Apartments, along North Dale Mabry Highway in Tampa. CBRE represented a joint venture between Blackrock and BH Equities in purchasing the 438-unit complex from Jupiter-based Landmark Residential.

“We haven’t had a true class A transaction in almost a year and a half,” Jim Bobbitt, senior vice president with CBRE’s Tampa office, tells GlobeSt.com. He says many of the apartment properties coming onto the market locally were built in the 1980s and are trading at an 8% cap rate.

Three Palms opened in 1986 and underwent nearly $4 million worth of renovations in mid-2008. Landmark paid $35 million for the complex in July 2006, according to Bobbitt.

The latest transaction amounts to $53,600 per unit, slightly below the $62,000 median price recorded over the past year by Marcus & Millichap. The current median is 9% below the peak price seen three years ago.

Marcus & Millichap predicts in a research report that prospective apartment buyers in the Tampa Bay market will remain conservative, possibly delaying purchases on the premise that prices will fall further. “Many investors are focusing on acquisition opportunities with attractive assumable financing in place or instances where the sellers carry a second mortgage,” the report states.

CBRE says in its own report that even though Tampa Bay and other Florida markets are hinging on the national economy, overall fundamentals are sound with limited new construction in the pipeline. Monthly rents currently average on either side of the $800 mark, with vacancy averaging 10%.

Bobbitt says he anticipates up to eight more closings in the market through the remainder of this year. He expects market conditions to remain the same going into next year, with improvements expected in 2011.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.