Phoenix Realty Acquires $28M Tampa Asset
- Feb 16, 2018
Phoenix Realty Group has acquired Tuscany Villas Apartments, a Class B multifamily community in Tampa’s submarket of Brandon, Fla. The property was purchased for $28.2 million from CAPREIT. According to Yardi Matrix, PRG assumed the $18 million outstanding balance of an $18.4 million loan held by Fannie Mae. The 10-year loan bears interest at a rate of 3.6 percent per annum, due to mature in 2025. The sale was also subject to a $3.8 million loan held by Fannie Mae.
Located at 1919 Sterling Palms Court, the 248-unit community was constructed in 1997 and offers 20 percent of its units as income- and rent-restricted to residents earning less than 50 percent of the area median income. According to Yardi Matrix, the property was developed under Section 42 Low Income Housing Tax Credit provisions, with rents restricted through 2027. Tuscany Villas features one-, two-, three- and four-bedroom floorplans ranging from 672 to 1,344 square feet.
Current interior features include washer/dryer hookups, vaulted ceilings, high speed internet access and private balcony/patios. Comprising 20 three-story buildings, the community offers residents access to amenities such as a fitness center, business center, clubhouse, tennis and volleyball courts, outside storage, playground, swimming pool, spa, laundry facilities, 450 parking spaces and detached garages.
The firm will operate the property and rebrand it as Alvista Sterling Palms, as part of Phoenix’s Alvista Communities brand. The company plans to renovate, upgrade and modernize the property. Phoenix will be adding new signage, enhance the existing amenity package and update interiors to include faux wood flooring in the common areas, new countertops, stainless steel appliances, new kitchen cabinet doors and hardware.
“The purchase of Tuscany Villas will allow us to continue our successful strategy of acquiring underperforming properties and transform them into more valuable assets,” J. Michael Fried, CEO of PRG, told Multi-Housing News. “We have a number of property improvements planned, which will enhance the overall living experience for existing tenants, and help to attract prospective tenants. Additionally, we are excited to retain a presence in the Tampa area, and more specifically, to own a multifamily property in a neighborhood close to major employment centers, downtown Tampa, retail, restaurants and shopping.”
With the addition of this community, PRG now owns three properties in Florida. Last July, the company purchased Silver Cliff, a garden-style property in Englewood, Colo. for $57.8 million.
Image courtesy of Phoenix Realty Group