Cushman & Wakefield has arranged the sale of a value-add portfolio containing two garden-style apartment communities totaling 136 units in Tampa. The portfolio sold for $13.1 million, or $96,324 per unit.
Executive Director Mike Donaldson and Executive Director Nick Meoli, with Cushman & Wakefield’s Florida Multifamily Investment Sales Team, represented the seller, Axiom Realty Partners, LLC, a real estate investment firm focusing on multifamily properties throughout the Southeast. The buyer is Arena Capital.
The two properties, Palms at Ballast Point and Sun Bay, are situated approximately half a mile from one another at 3729 W. Tyson Ave. and 3730 W. Bay Ave., respectively, in the coveted Gandy/Ballast Point submarket.
Palms at Ballast Point was built in 1973 and contains 48 residences. Sun Bay was built in 1985 and contains 88 residences. Units are 50 percent one-bedroom and 50% two-bedroom and average 771 square feet in size with an average market rent of $968. The properties were 98 percent occupied at time of sale.
Select units were recently updated with resurfaced countertops, upgraded hard surface flooring, new cabinet faces, new ceiling fans, resurfaced tubs and new kitchen appliances. Amenities include a swimming pool with sundeck, pergola picnic area with grilling stations and on-site laundry facilities.
“We are pleased to announce the sale of this South Tampa value-add portfolio, which marked the opportunity to acquire two older vintage communities in the Gandy/Ballast Point submarket with considerable upside,” said Donaldson. “As the peninsula from Gandy Boulevard to MacDill Airforce Base is viewed as one of the last untapped markets poised for growth in South Tampa, we received tremendous interest in this offering.”
“Through a proposed community rebranding and unit interior upgrades, we uncovered the ability to increase monthly rents by over $200 once fully implemented,” added Meoli. “Coupled with being minutes away from major new retail, MacDill Air Force Base, the new Westshore Marina District and downtown Tampa, these properties have excellent value-add potential.”
Cushman & Wakefield’s Florida Multifamily Team is directed by Robert Given and includes Donaldson and Meoli as well as Luis Elorza and Brad Capas in West-Central Florida; Jay Ballard and Ken Delvillar in Central Florida; and Zachary Sackley, Troy Ballard, Calum Weaver, Errol Blumer, Neal Victor, James Quinn and Perry Synanidis in South Florida. Robert Kaplan, Chris Lentz and Mark Rutherford facilitate debt, equity and structured finance for the team throughout Florida.