By Timea Papp
Tampa Bay’s apartment market has seen robust activity in the past year, with a vast array of investors showing interest in the metro, drawn by the region’s vibrant economy and strong market fundamentals. Hurricane Irma transformed into a tropical storm as it made landfall in the Tampa area, leaving behind minimal damage. While Tampa’s multifamily investment market is still going strong, Yardi Matrix compiled a list of the 10 largest transactions that closed in 2017.
10. Enclave at Wesley Chapel
In one of the largest multifamily deals closed in Pasco County, Valhalla Holdings acquired the 312-unit Enclave at Wesley Chapel in Wesley, Fla. Sherman Properties sold the asset in May for $52.5 million and Freddie Mac originated $28.9 million in acquisition financing. The fixed-rate, interest-only loan is set to mature in June 2024. The asset, built in 2006, changed hands in a 1031 tax-deferred exchange.
9. The Village at Terra Bella
In another Pasco County transaction, Wood Partners sold the 311-unit Village at Terra Bella for $52.9 million to Northland Investment Corp. Freddie Mac provided $42.3 million in acquisition financing. The loan carries a 10-year term with a 4.39 percent interest rate as well as a 30-year amortization schedule. Located at 23700 Viento Drive in Land O’Lakes, Fla., The Village at Terra Bella was 94.5 percent occupied at the time of the sale. Completed in 2016, the community is part of the 22-acre Terra Bella mixed-use development.
8. Radius Palms
The RADCO Cos. shelled out $58.8 million for the 540-unit community now dubbed Radius Palms when it bought it from Sterling American Property earlier this year. HFF arranged the $45.4 million, seven-year, floating-rate financing originated by Freddie Mac. Previously known as the St. Croix Apartments, the property was built in two phases in 1988 and 1990, on 27 acres at 14501 Caribbean Breeze Drive. Following the acquisition, the new owner revealed plans to spend $7 million on renovations.
7. Hamlin at Lake Brandon
The 360-unit property traded for $60 million in June when General Services Corp. purchased Hamlin at Lake Brandon from Sentinel Real Estate. Fannie Mae funded the transaction with $40.2 million in acquisition financing. The 10-year loan is due in July 2027 and bears an interest rate of 4.21 percent. Located at 1508 Ladora Drive in Brandon, Fla., the community was completed in 2003.
6. Bleecker Hyde Park
Alliance Residential Co. sold the 259-unit Bleecker Hyde Park for $64.5 million. This was New Jersey-based Raia Properties’ first buy in the Tampa Bay area, facilitated by a $43 million acquisition financing originated by JPMorgan Chase. Alliance developed the community located at 1702 W. Cleveland St. in 2015. Bleecker Hyde Park features select homes boasting private terraces and panoramic views of Tampa Bay.
5. The Sanctuary at Highland Oaks
One of the largest transactions of the year was the $70 million sale of The Sanctuary at Highland Oaks. Eaton Vance Investment Managers purchased the 456-unit community located at 10246 Douglas Oaks Circle from Cottonwood Capital. Fannie Mae provided the $49 million financing with a 10-year term and 3.74 percent interest rate. Developed in 2002 and managed by Lincoln Property Co., the gated community previously changed hands in 2012.
4. Brookview at Citrus Park
The community previously known as Tapestry at Citrus Park commanded $71 million. Brookview Realty Group purchased the 400-unit asset from a partnership between Arlington Properties and Glenmont Capital Management. The same joint venture developed the property in 2015, on a 60-acre site at 12780 Olive Jones Road. Barings Multifamily Capital’s $53.8 million acquisition loan facilitated the deal, with the four-year mortgage scheduled to mature in March 2021.
3. Seneca at Cypress Creek
Lantower Residential paid $78.9 million to UBS Realty Investors for the 451-unit Seneca at Cypress Creek, marking one of the biggest deals closed last month. The Dallas-based company acquired the asset in a debt-free transaction. Located at 1810 Sweetbroom Circle in the Lutz/Wesley Chapel submarket, the community was constructed in 2010 by Greystar Real Estate Partners. The developer sold the Class A property to UBS Realty Investors in 2012 for $62.5 million.
2. Crescent Westshore
The 374-unit community opened in September 2016 and traded a few months later in one of the largest transactions on our list. Crescent Communities sold its newly developed apartment community to Nicol Investment Co. for $80 million in February. Located in Tampa’s Westshore district, the property sits on a 5.43-acre site at 2202 N. Lois Ave. The new owner plans to rebrand Crescent Westshore in the near future. The community was 50 percent leased at the time of the sale.
One of Tampa’s tallest buildings, the 35-story Element sold last month in a whopping $112.4 million deal. Northland Investment Corp. purchased the high-rise from Crescent Heights of America. The buyer facilitated the purchase through an undisclosed amount drawn from its $113 million line of credit with Fannie Mae. The loan is due in November 2037. Located in downtown Tampa at 808 N. Franklin St., Element features 395 apartments and was developed in 2009. The property marks Northland’s fifth acquisition in the last five months.
Images courtesy of Yardi Matrix