735-unit Tampa Area Bay Multifamily Portfolio Changes Hands
The bidding process for the five rentable properties located in Tampa, Brandon and Bradenton was very competitive. Marcus & Millichap mediated the transaction.
By Alexandra Pacurar, Associate Editor
Tampa, Fla.—Marcus &Millichap announced the sale of a five-property multifamily portfolio in Florida for $41 million. Asia Capital Real Estate bought Palms at Cedar Trace (176 units), Palms at Sand Lakes (212 units), Palms at Ashley Oaks (130 units), Palms at Palisades (125 units) and Palms at Cortez (92 units).
The buyer received a $4.1 million loan by Fannie Mae for the Palms at Cortez property. A second loan of $22.4 million was granted by the same mortgage loan company for the other four properties, according to Yardi Matrix. The entire multifamily portfolio offers nearly 620,000 square feet of rentable living space.
“The portfolio was highly coveted and the bidding process was very competitive. With annual leveraged returns in the 12 percent to 14 percent range, it is clear that demand for Class B and Class C assets remains very strong in Central Florida”, said Frank Carriera, First VP of Investments in Marcus & Millichap’s Tampa office.
Frank Carriera and Michael Regan, also First VP of Investments in Marcus & Millichap’s Tampa office, represented the seller, The Focus Group, and procured the buyer.
Average rents per unit are set between $669 at Ashley Oaks in Tampa and $1,002 at Palms at Cortez in Bradenton, according to Yardi Matrix. Common amenities in all the properties include a swimming pool, laundry services and parking spaces. Palms at Palisades and Palms at Cedar Trace also have extra facilities for leisure and sports like basketball, volleyball or tennis courts. For the Cedar Trace and Sand Lakes communities, waterscape is also listed as an amenity.
Three of the communities were built in the 80s, while Palms at Ashley Oaks was built in the late 60s and Palms at Cortez in 1975. All are set in great locations, next to important education or medical institutions.
Marcus & Millichap is a leading commercial real estate investment services firm with offices throughout the U.S. and Canada. Last year, it closed over 8,700 transactions with a value of about $37.8 million.
Image courtesy of Yardi Matrix