Gamla-Cedron Group, an Israeli-based real estate investment firm, continued a condo buying binge with its fifth recent distressed bulk multifamily deal in the Tampa area.
BUYER: Gamla-Cedron Group, Israel
PROPERTY: various addresses on Sanctuary Cove Drive, Temple Terrace, formerly known as 7855 E. Fletcher Ave., Temple Terrace
PRICE: unknown (note sale)
PREVIOUS PRICE: $46 million, March 2006
PLANS, DESCRIPTION: Gamla-Cedron Group, an Israeli-based real estate investment firm, continued a condo buying binge with its fifth recent distressed bulk multifamily deal in the Tampa area.
The latest: The firm purchased the mortgage note covering 158 units in the 392-unit Preserve at Temple Terrace. The purchase price for the note was not disclosed.
The current property owner, Miami Beach-based Neviot Realty Holdings LLC, purchased the Class-A property in early 2006 for $46 million, or $117,347 a unit. Neviot planned a condominium conversion. The property is currently in foreclosure.
“This will be another great addition to our portfolio and will bring our total unit count in Florida to nearly 800 through six lender-owned transactions,” Shaoul Mishal, president of Gamla-Cedron, says in a press release. “We are still in active negotiations on another 1,000+ units throughout Florida and continue to seek out other well-positioned Class A bulk purchase opportunities in major markets in the Southeastern United States.”
T. Sean Lance and John Burpee of NAI Tampa Bay represented Gamla-Cedron. Lance is the managing director and president of the troubled asset optimization division at NAI Tampa Bay, while Burpee is the president of the multifamily division and chairman of the firm.
The property made particular sense for Gamla-Cedron, Lance says, because it owns units in The Falls at New Tampa, an adjacent property.
“That gives them nice economies of scale,” he says. “This is also one of the last remaining Class-A bulk opportunities in Tampa Bay. Most of the inventory has really been picked through. There's still a lot of B and C out there, but for the most part, the inventory for Class-A product has really thinned out.”
Gamla-Cedron plans to complete the conversion process and lease any vacant units.
Gamla-Cedron has been a consistent bulk condo buyer since it entered the market in June 2009. That month the company bought 49 units at the Arbors at Carrollwood from Corus Bank. The firm followed that up with 185 units at The Falls at New Tampa from iStar Financial in December 2009. It purchased 145 lender-owned units at Promenade at Tampa Palms in May and added another 96 lender-owned units at Lakeside Townhomes at Seven Oaks in October.
All four properties now have occupancy rates of at least 95%.