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Market Report
Central Florida Berkadia, the jointly-owned venture of Berkshire Hathaway and Leucadia National Corporation providers of multifamily mortgage brokerage, investment sales, advisory and research services, has merged two of its Orlando offices.
Hal Warren, senior vice president in Berkadia's Southeast Investment Sales division in Orlando, said his office has merged with Berkadia's Mortgage Banking division on the 13th Floor of the Lincoln Plaza at 300 S. Orange Ave. across from the new performing arts center.
Warren, along with Cole Whitaker, Orlando partner of Berkadia's Investment Sales division and Mary Beale, have left their offices in the Seaside Plaza building at 201 S. Orange Ave. for their new Lincoln Plaza suite, along with Marc Sumner, senior vice president and branch manager for the Orlando mortgage banking division.
Bay Area Marcus & Millichap, a commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Flamingo West Apartments, a 72-unit apartment community located in Tampa, Fla., according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $3,500,000.
Luis Baez, senior associate and Casey Babb, a CCIM and vice president investments, in Marcus & Millichap’s Tampa office, represented both parties in the transaction.
Flamingo West Apartments is a 1970s vintage, Class "B" garden apartment community located at 3738 West Idlewild Circle in Tampa, Fla.
The community consists of two-story concrete block buildings with built-up flat roofs clustered around central courtyard areas. Units are 90 percent two-bedroom/one-bath or larger and average 872 square feet. Units are accessed from exterior breezeway corridors and feature fully-equipped kitchens with dishwashers, large open floor plans, tile floors in the living areas, private balconies and fenced-in backyards, washer-dryer connections in select units and updated kitchens and bath.
Community amenities include an on-site leasing center, large laundry facility, swimming pool and sundeck, interior courtyard areas and a playground.
"This transaction was equally, frustrating, challenging and rewarding," says Babb. "The frustrating part was that the sale took 19 months to complete. It was a major challenge to make a deal at an aggressive price point given the sub-par operating performance and physical issues, which included bad roofs and a lot of other deferred maintenance," continues Babb.
"The rewarding part was that the buyer was able to secure preservation tax-credits which are highly competitive and is positioned to embark very soon on a $3 million rehab job. This will add another 30 to 50 years of useful life to the property and will provide the residents with a better place to live."
* * * Cameron Barbas, associate, Michael P. Regan and Francesco P. Carriera, vice presidents investments in Marcus & Millichap’s Tampa office, represented both parties in the transaction.
The properties are located at 5150 and 5122 6th Street in Zephyrhills, Florida and consist of two, one-story buildings and one, two-story building. There are five studio units with 350 rentable square feet and six, one-bedroom/one-bathroom units with a range of 450 to 950 rentable square feet. The buildings are located within two blocks of each other and are situated on approximately 0.37 acres and 0.15 acres of land. Amenities include a private gated entry at 5122 6th Street.
"The transaction closed within 66 days of the initial marketing of the portfolio located in the tertiary market of Zephyrhills, says Barbas. We drove multiple written offers, including the eventual purchaser’s offer, within the first two weeks of marketing. The assets were only 72 percent occupied at the time of sale, as three of the 11 units were down."
* * * Marcus & Millichap, a commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Colony 900 Apartments, a 20-unit apartment property located in St. Petersburg, Fla., according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $975,000.
Joshua Teplitzky, investment associate, Michael P. Regan and Francesco P. Carriera, vice presidents investments in Marcus & Millichap’s Tampa office, represented both parties in the transaction.
Colony 900 Apartments was built in 1974 and is located at 900 70th Street North in St. Petersburg. This two-story building is comprised of a mix of one and two-bedroom units. Amenities include central heat and air-conditioning in all units, and an on-site laundry facility. The building was repainted within the past year.
"This asset commanded a lot of interest as it was owned in a trust and not previously marketed before," says Teplitzky. "We drove seven offers in the first month-and-a-half of marketing and closed earlier than the timeframe stated in the contract," adds Teplitzky. "The buyer pool saw this as a value add opportunity through renovating the unit interiors, as the rents were $100 on average below the market across the floor plans."
Southwest Florida Marcus & Millichap, a commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Plaza-View Apartments, a 12-unit apartment community located in Fort Myers, Fla., according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $342,500.
Adam Podbelski, investment associate, Michael Donaldson, vice president investments, and Nicholas Meoli, senior investment associate, all in Marcus & Millichap’s Tampa office, represented both parties in the transaction.
Plaza-View Apartments is located at 2144 Illinois Avenue in Fort Myers. This 12-unit apartment community consists of one, two-story, wood-frame building. Built in 1926, the structure has since received additional renovations, including a white EPDM roof in 2005 and a rear staircase in 2011. The property is situated on approximately 0.17 acres of land, just a quarter-mile from the Edison and Ford Winter Estates. Plaza-View is comprised of eight studios with approximately 500 rentable square feet and four, one-bedroom/one-bathroom units with approximately 600 rentable square feet.
"Having the second largest rental growth rate among U.S. markets in 2013, Fort Myers has continued to see increased demand, especially in highly desirable submarkets like the River District" says Podbelski. "Being in very close proximity to the downtown area and offering a strong value-add opportunity, the asset drew significant interest from both local and international investors." |
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