The apartment complex in the Midtown Tampa development brings the highest price in the past year.
A 390-unit apartment building in one of Tampa’s newest developments has sold for $236.5 million to CBRE Investment Management Fund.
The building, Novel Midtown Tampa, is in the $500 million Midtown Tampa, a master-planned community in one of the city’s busiest commercial districts.
The sale is one of highest priced transactions in a year when the multifamily market has felt nothing short of as hot as lava. That’s especially true when you consider the per-unit price for the development was $606,410.
According to Colliers' first-quarter multifamily market report, the highest sales price in the past year in Tampa before this was the 400-unit Riverwalk Manor in downtown. It sold for $220 million, or $562,500 per unit, in December. The next closest was the 324-unit Channel Club, also in downtown, which brought $136 million — $419,753 per unit — in November.
One can see why the price tags for apartment communities are high and going higher. The Colliers report says apartment demand and rent in the city are at an all time high, with Tampa leading all Florida markets with an annual rent growth of 26.33%.
Daniel Casey, the director of CBRE Investment Management’s residential transaction team, says in a statement announcing the sale that “Tampa is one of the top performing metros in Florida and has been a target market for investment activity for CBRE.”
“We believe that our expertise as an investor-operator will further benefit and enhance the appeal of the asset and the larger mixed-use project.”
Novel Midtown opened about 13 months ago. The complex is one of the premier pieces in the 1.8 million-square-foot, 22-acre development at Dale Mabry Highway and Interstate 275. Its neighbors in the complex include REI, Shake Shack, and Marriot’s Aloft and Element hotels.
Novel Midtown’s developer, Crescent Communities, announced the sale in a May 24 statement. The company is currently building Novel Beach Park and Novel Independence Park in Tampa. And in Sarasota, it’s building Render Legacy Trail and Harmon Legacy Trail.