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Tampa Bay Area
Business Observer Friday, May 14, 2010 9 years ago

Parrish apartment owner buys Cinnamon Cove

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Dan Gessner purchased the 314-unit Cinnamon Cove apartments for $3.4 million.

BUYER: St. Thomas Properties LLC (principal: Daniel Gessner), Parrish


SELLER: Grace Properties 26 Ltd.


PROPERTY: 12401 N. 15th St., Tampa


PRICE: $3.4 million


PREVIOUS PRICE: $1.29 million, December 1984


LAW FIRM ON DEED: Greenspoon Marder PA, Orlando


PLANS, DESCRIPTION: Dan Gessner purchased the 314-unit Cinnamon Cove apartments for $3.4 million.


The price equated to $10,828 per unit or $19.86 a square foot.


Robert Goldfinger, Darron Kattan and Kevin Kelleher of Franklin Street Real Estate Services handled the transaction.


The 43-year-old complex on 15th Street, north of 122nd Avenue, was 93% occupied at the time of the sale. But rents and collections were low and eight of the units were damaged by flooding five years ago and never repaired.


Gessner, a Parrish-based investor, plans to paint and clean up the property.


“The seller gave the buyer a credit with the idea that the building may need to be torn down,” Goldfinger says. “It needs landscaping and some smart capital improvements. The seller was a distressed seller that needed to dispose of this property to solve other problems.”


Added Goldfinger: “While the pricing may look depressed, it is a challenging property in a variety of ways and needed to offer the buyer quality upside for the risk factors involved.”


The Tampa property marks Gessner's return to buying apartment complexes after he sold off all but one a few years ago. He says the plethora of buying opportunities drew him out of retirement and he might even buy another one this year.


The purchase entity St. Thomas Properties LLC mortgaged the property to USAmeriBank for $2.38 million.

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