29th Street Capital has acquired a two-property portfolio in Brandon, Fla., for $27.6 million from Highgate Capital Group. The 112-unit The Park at Avilla traded for $15.9 million, while the 88-unit The Park at Pienza changed hands for $11.7 million, per Hillsborough County records. The deal marks the second and third acquisition in the Tampa – St. Petersburg market for 29th Street Capital, following last month’s purchase of Calais Park Lofts Apartments, a 261-unit community in St. Petersburg, Fla.
The new owner financed the acquisitions through two, seven-year, Freddie Mac loans, originated by Newmark Knight Frank. The Park at Avilla received a $11.6 million loan and The Park at Pienza received $8.7 million in financing. ResProp Management will provide property and management services for the two assets, which are 2 miles apart and less than 15 miles of downtown Tampa, Fla.
Located at 1002 Creek Bridge Road, The Park at Avilla includes two- and three-bedroom units, a volleyball court, playground and swimming pool. According to Yardi Matrix data, the property was 92 percent occupied as of January. The Park at Pienza is situated at 1212 Askew Drive and features one- to three-bedroom apartments in eight, two-story buildings. Amenities at the gated community include a clubhouse, tennis court, playground and swimming pool. As of the first month of 2019, the asset was 94.3 percent occupied.
The Tampa Bay area is experiencing robust population and employment increases, with the working age population growth in Tampa over the last two years is almost twice the U.S. average.
“29th Street Capital feels that the strong market fundamentals in the Tampa Bay area will continue for the foreseeable future and help drive renter demand,” said Ryan Smyth, vice president of acquisitions at 29th Street Capital, in prepared remarks. “The properties have easy access to several employment hubs in the Tampa Bay area as well as retail centers. Plus, more than 50 million square feet of office space, which is continuously growing, is within a 30-minute drive.”
The new owner plans to improve the units’ interiors with laminate countertops, vinyl plank flooring, new paint and stainless-steel appliances. The amenities and exteriors are also set to be upgraded, including the clubhouse, fitness center, grilling area, roofing, exterior staircase and landscaping.
Images courtesy of Yardi Matrix