Madison Capital Breaks Ground in Tampa Suburb

Madison Watergrass. Image courtesy of Madison Capital Group

Madison Communities, the management arm of Madison Capital Group, has begun construction of Madison Watergrass, an eight-building, 288-unit suburban multifamily community located in Wesley Chapel, Fla. Madison Communities financed the project alongside FrontRange Capital Partners. Benco Construction will oversee the development, which breaks ground this month. The project was funded for an undisclosed amount.

After its completion, the community will feature a mixture of two- and four-story buildings. Amenities will include luxury finishes, a clubhouse, a fitness center, an outdoor lounge with a kitchen and a pool deck with cabanas. Situated in suburban Tampa and adjacent to the I-75 highway, the development will be within 25 miles of the city center, with connections to the larger Tampa Bay area.

Tampa still a top market

Tampa remains a robust market for a diverse array of multifamily construction and investment, ranking among 2021’s top ten markets nationwide for multifamily sales volume, according to a July 2022 report from Yardi Matrix. Much of this surge is due to a large-scale migration of residents to the state over the past two years, which has predicated a widespread demand causing a citywide vacancy rate of 2.1 percent, a 200-basis-point decrease over the past year, according to a second-quarter 2022 report from Marcus & Millichap. Still, the city has seen almost $3 billion in sales in the first five months of the year, alongside 16,939 units in its construction pipeline, according to Yardi Matrix data.

Other multifamily projects in the grater Tampa Bay area include a joint venture between CP Capital US and Crescent Communities to develop the 44-acre mixed-use NOVEL Independence Park, as well as a RISE and Origin Investments’ partnership for the construction of Horizon at Sereno, a 320-unit market rate community.