Marcus & Millichap, a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Lakeside Apartment Homes, a 228-unit apartment asset located in Brandon, Florida. The $30 million sales price equates to $131,579 per unit, which is the highest price per unit paid for a 1980s-built multifamily property in the Brandon submarket. The price per unit is more than $15,000 and 13 percent greater than the next highest price paid for a property of the same vintage.
“This sale represents the premium pricing that can be achieved through a proven value-add initiative,” says Ned Roberts, associate in Marcus & Millichap’s Tampa office. “The buyer plans to build on the seller’s improvements with extensive common-area and unit-interior upgrades. This strategy is expected to increase a 5.4 percent trailing cap rate to more than 8 percent over a two-year period.”
“The ability to increase the gross potential rent by nearly 27 percent attracted over 300 registered investors from 29 states,” adds Nicholas Meoli, senior vice president investments.
Roberts, Meoli and Michael Donaldson, senior vice president investments, represented the seller, and procured the buyer. Both are Florida-based limited-liability companies.
Built in 1985, Lakeside Apartment Homes is located directly across from Brandon Regional Hospital and is close to Interstate 75, Interstate 4, the Lee Roy Selmon Expressway and the Westfield Brandon Mall. Property amenities include a swimming pool, sports courts, a car-care station, storage units, and a lakeside gazebo.
About Marcus & Millichap
With over 1,700 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed nearly 9,000 transactions in 2016 with a value of approximately $42.3 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors.