Tampa, Fla.—In a $65.5 million transaction, real estate investment and management firm Continental Realty Corporation has purchased The Grand Reserve at Tampa Palms apartment community in Tampa, Fla. Situated at 16616 Palm Royal Drive, The Grand Reserve at Tampa Palms is a 17-year-old, 390-unit apartment community on an approximately 41-acre site. The seller was Prudential Real Estate Investors.
The apartment community was acquired on behalf of Continental Realty Fund, IV LP. The fund focuses on acquiring value-add retail and multifamily properties in the Mid-Atlantic and Southeast regions of the United States. The Grand Reserve at Tampa Palms represents the fourth residential community purchased by the fund.
The property enjoys 6.8 percent annual rent growth, and total apartment occupancy hovers above 96 percent. New multifamily development is limited at Tampa Palms.
Continental Realty Corporation plans to significantly upgrade the unit interiors, providing them with high-end finishes. The company also intends to substantially enhance the common-area amenities. It is hoped these improvements will help make Grand Reserve at Tampa Palms the premiere luxury rental community in Tampa Palms.
Fifteen three-story garden buildings comprise the apartment community, which is located within the master planned community of Tampa Palms.
The apartment homes range in size from one to four-bedrooms, and measure from 890 to 1,800 square feet. At an average of 1,213 square feet in size, the residences at The Grand Reserve at Tampa Palms are some of the most expansive in the market. Attached garages with reserved parking in front are offered at 90 of the residences.
Common-area amenities include a fully-equipped clubhouse with state-of-the-art health and fitness facility; outdoor pool, sundeck and Jacuzzi; screened outdoor kitchen area; sand volleyball pit; lighted tennis and basketball courts; and children’s playground.
Within a mile radius of The Grand Reserve at Tampa Palms, median home values average $300,000.
The average annual household income within a three-mile radius of the community is $90,000. That number is 33 percent higher than the annual household income in the Tampa metropolitan statistical area. Tampa Palms Elementary and Liberty Middle Schools, both A-rated, are within one mile of the property.
“The Grand Reserve at Tampa Palms represented a tremendous opportunity to acquire an apartment community in one of the most desirable areas of Tampa,” Baltimore, Md.-based Continental Realty Corporation chief executive officer J.M. Shapiro said. “The property has performed extremely well historically, and we will have the ability to improve it further in a number of areas.”
The area is close to major employers that include USAA and the University of South Florida, Shapiro noted. “With the in-place amenity package and close proximity of retail shopping venues including The Shops at Wiregrass, we felt like we could clearly add value to this property and improve operating results,” he said.