Market Report

Daytona Beach – Marcus & Millichap Real Estate Investment Services has announced the sale of Newport Waterfront Condominiums, a 39-unit condominium community located in Daytona Beach, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset commanded a sales price of $2,145,000 or $55,000 per unit.

Michael Donaldson, a senior multifamily associate in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the south Florida-based sellers. Donaldson also procured and represented the buyer, a limited liability company also based out of south Florida.

Newport Waterfront Condominiums was built in 1972 and is located at 900 South Peninsula Drive. Built as an apartment community, the property was converted to condominiums in January 2007 and consists of two buildings. One building has 30 two-bedroom/one-bath units and the other building has nine, two-bedroom/two bath units, all facing the Halifax River.

"The Newport Condominiums generated a large amount of interest from the investment community, mainly due to the property having frontage to the Halifax River Intracoastal Waterway," Donaldson said in a statement. "We received over 10 offers and eventually closed with a cash buyer for 12 percent above list price, at $55,000 per unit, one of the highest prices for a pre-1980s-built multifamily complex in Volusia County.

Orlando – McCann Realty Partners announced it has started construction on the 192-unit second phase at the Vista at Lost Lake Apartments in Clermont. Located in the Lake County submarket of Orlando, the existing 276-unit, garden-style community was built in 2007. Phase two is scheduled to be completed at year end and will begin lease up in September 2013. The combined 468 apartment homes will be managed by Pegasus Residential, LLC. The construction loan was funded by Wells Fargo Bank, NA.

"We entered the greater Orlando market in May 2012 with the purchase of Vista at Lost Lake Apartments and believe this second phase will enhance our ability to offer exceptional apartment living in Clermont. We believe rents will continue to grow for the next several years and are actively looking to add more assets in Orlando," said McCann's President Matthew T. Akin. "We really like the demographics, the location adjacent to retail and the close proximity to highly rated schools."

McCann Realty Partners and its principals have decades of diverse experience and a very strong track record in the apartment industry. With offices in Richmond, Virginia and Dallas, Texas, MRP teams with institutional capital sources to acquire, develop and manage apartment communities in the Southeast, Southwest, Mid-Atlantic and adjacent regions.

Beech Street Capital, LLC, announced that it closed a $18 million Freddie Mac fixed-rate loan for the acquisition of the Cornerstone Apartments, a 430-unit garden-style apartment complex in Orlando. Senior Vice Presidents Mitch Sinberg and Michael Wallace, headquartered in Beech Street’s Fort Lauderdale office, originated the transaction.

The property had been lender-owned since March 2010 and managed by a third-party management company, which had been successful in raising occupancy and enhancing overall performance. The borrowers are committed to increasing the economic return on the property even further, instituting a capital improvement program to eventually renovate all units. "The borrowers’ demonstrated commitment to improving the property was a factor that weighed favorably with Freddie Mac," says Wallace. "This helped us accelerate the process so that they closed within the terms of their purchase and sale agreement." The borrowers’ improvement plans include kitchen and bath upgrades, installation of washer/dryers in all units, new cabinetry, countertops and fixtures, wood plank flooring, stainless appliances, ceiling fans, wood blinds, and two-tone paint as well as common area amenities including the fitness center and pool updates.

St. Petersburg – Marcus & Millichap Real Estate Investment Services has announced the sale of Carmarwin and 236 10th Avenue Northeast, a 38-unit apartment building located in St. Petersburg, according to Richard D. Matricaria, Regional Manager of the firm’s Tampa office. The asset commanded a sales price of $1,400,000.

Michael P. Regan and Francesco P. Carriera, vice president investments, and Nicholas Meoli, senior investment specialist in Marcus & Millichap’s Tampa office, represented both the seller and the buyer, private investors based in Florida.

Robbins Property Associates was recently named one of Tampa Bay’s Top Workplaces 2013 by the Tampa Bay Times. Employees nominated their employers and were surveyed about several topics, including practices and policies that make these companies the top places to work.

"What’s unique about this report is that it explains how these Tampa Bay companies are creating engaged work forces and productive work environments, even in tough times," said Neil Brown, Times editor and vice president. "We give readers an inside look into these companies and they hear the stories directly from employees."

For a complete list of the 2013 Top Workplaces in Tampa Bay, go to www.tampabay.com/topworkplaces2013. To find out more information about Robbins Property Associates or career opportunities, please visit www.robbinspropertyllc.com

Brooksville – Marcus & Millichap Real Estate Investment Services has announced the sale of Village Green Apartments, a 41-unit apartment community located in Brooksville, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset commanded a sales price of $700,000.

Michael Donaldson, a senior multifamily associate in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the Florida-based seller, a financial institution. Donaldson also procured the buyer, a local private investor.

Built in 1985, this 30,488 square foot rentable property is located at 715 Oakdale Avenue. The property consists of two quadplex buildings, 16 duplexes and one single unit, all one-story buildings. Constructed of wood frame on concrete slab, the buildings rest on a total of 4.8 acres of land. The unit mix consists of eight one-bedroom and one-bathroom units with approximately 550 rentable square feet, and 33 two-bedroom and one-bathroom units that are approximately 675 rentable square feet. Amenities include full-size washer and dryer connections, exterior storage and central air-conditioning, and a small on-site laundry facility.

"With the declining number of multifamily foreclosures for sale at the moment, Village Green presented an excellent opportunity for a buyer to purchase an asset that offered a true ‘value add’ scenario by filling the high number of vacancies" says Donaldson. "As a result of the bidding wars for apartments that are taking place in primary markets like Tampa and Orlando, investors are continually coming into secondary markets much like Brooksville, to achieve higher returns," adds Donaldson. "As a result, we received a tremendous amount of interest on this property and closed with a cash buyer at an excellent price per unit for the submarket."

Tampa – Marcus & Millichap Real Estate Investment Services has announced the sale of Bay Villa SoHo Apartments, a 24-unit luxury apartment community located in Tampa, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset commanded a sales price of $2,900,000.

Casey Babb, CCIM, and senior multifamily specialist and associate Luis Baez, both in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the seller, InTown Housing Group. The buyers, local private investors, were procured by an outside broker.

Bay Villa SoHo Apartments is a newly renovated, Class "B " historic apartment community located at 1402 South Bay Villa Place. Originally built in the 1920s, the property consists of 24 luxury apartment homes which have been upgraded with condo level finishes. Common area amenities include barbecue grill stations, fire pits and gated picnic areas.

"For properties sized between 10 to 50 units, Bay Villa SoHo commanded an all-time high price per unit and price per square foot for South Tampa, at $120,833 per unit and $212 per square foot respectively," says Babb. "This illustrates the level of demand in the marketplace for well-located apartment assets with durable, predictable income streams. However, even at a seemingly high ‘price per pound,’ the income metrics were very much in-line with the broader market and the buyer will realize around a 10 percent cash-on-cash return in year one," adds Babb.

Tampa – Marcus & Millichap Real Estate Investment Services has announced the sale of Avalon Village Apartments, a 241-unit apartment community located in Tampa, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The listing price of $4,600,000 equates to $27.20 per square foot.

Avalon Village Apartments was built in the 1970s and is located at 14350 North 22nd Street, in the ‘University West’ submarket of Tampa. The property is housed in 24 two-story, concrete block buildings with flat, built-up roofs. Buildings are situated on a large 7.77-acre site featuring mature landscaping and abundant parking. Amenities include a security access gate, basketball courts, swimming pool, laundry facilities and an on-site clubhouse/leasing center.

"Avalon Village was a distressed asset with only 50 to 60 percent occupancy at the time of sale, and with a good amount of deferred maintenance. The seller had defaulted on his loan and his lender was forcing the sale," says Babb.

"The buyer purchased the property on an all-cash basis with plans to invest between $500,000 and $1,000,000 in capital improvements during the first year," according to O’Connor. "As in the last cycle, we’re seeing capital moving north from the white hot Miami market and into more reasonably priced assets in the Tampa and Orlando markets."

The Related Group has begun leasing its 356 apartment units at Pierhouse Channelside, adding needed inventory downtown as residential occupancy tops 95 percent at other buildings.The Building at 120 Meridian Ave. has 33 studios, 191 one bedrooms and 133 two bedrooms.

The range of about $1.64 per square foot on the largest unit to $2.18 per square foot on the studio shows growth in downtown rental rates. Monthly rents in the district were averaging about $1.48 per square foot per 2011, according to the Tampa downtown partnership.

Largo – Marcus & Millichap Real Estate Investment Services has announced the sale of Tara Gardens, a 22-unit apartment community located in Largo, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset commanded a sales price of $825,000.

Michael P. Regan and Francesco P. Carriera, vice president investments, and Nicholas Meoli, senior investment specialist in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the local seller, a private investor. The listing agents also procured the buyer of the property, a private investor based in California.

Tara Gardens was built in 1972 and is located at 1630 Jefferson Avenue in Largo. The property consists of a two-story building situated on approximately 0.51 acres of land. Tara Gardens is comprised of one- and two-bedroom units that were renovated within the last year. Property amenities include central heat and air conditioning, and an on-site laundry facility.

"This buyer is from California and this is his second acquisition in Pinellas County within the past 12 months," Meoli said in a statement. "There is an ongoing trend with out-of-state investors targeting multifamily properties in the Tampa Bay area."

?Beech Street Capital, LLC, announced that it closed an $8.6 million Fannie Mae conventional loan to refinance the Enclave at St. Lucie West, a 90-unit property in Port St. Lucie, Fla. Senior Vice Presidents Mitch Sinberg and Michael Wallace, headquartered in Beech Street’s Fort Lauderdale office, originated the transaction.

The deal was complicated by the fact that the property was originally planned and developed as a condominium. When the first phase was completed in 2007 and only two of the 28 units were sold, it was clear to the principals that the property would be more successful as a Class A rental community. As a result, all the apartments in the remaining three phases were marketed as rentals. The Beech Street team determined that Fannie Mae financing would be the most advantageous approach for the client. "Working in Florida, Michael and I have had extensive experience dealing with fractured condos," Sinberg says. "We were able to help the client put in place a structure that increased Fannie Mae’s comfort level with the deal." They stressed that the borrowers had full control over the HOA and the right of first refusal if the two units owned by third parties were sold. "Mitch, Michael and the entire Beech Street team were a pleasure to work with," says Jerry Rich, one of the principals. "The level of expertise and experience they brought to the transaction helped ensure that it proceeded as smoothly and as quickly as possible."

The Enclave at St. Lucie West is located in a desirable Port St. Lucie area. Its neighbors include two of the city’s most popular attractions: PGA Golf Village and New York Mets spring training center. The property itself is in excellent condition and is attractively landscaped. Interior amenities include ceiling fans, granite countertops in select units, washer/dryer connections, nine-foot ceilings, walk-in closets, double sinks in master bathrooms, patios, and private one- or two-car garages.