Real Estate Briefs (Tampa)
Triple Net Pays $55 Million for Apartments
Santa Ana, Calif.-based Triple Net Properties LLC recently paid $54.5 million for Tampa's Sanctuary at Highland Oaks apartment community. The private real estate investment trust (REIT) did not disclose terms of the sale last month when it first announced the deal.
On behalf of unnamed tenant-in-common investors, the REIT paid about $119,605 a unit for the 456 garden-style units in 18, three-story buildings at 10246 Douglas Oak Circle. The sale includes 34 acres north of Dr. Martin Luther King Jr. Boulevard off Falkenburg Road.
The seller of this 3-year-old apartment community is an affiliate of Dallas-based Trammell Crow Residential. TCR NF Properties Inc. paid $1.5 million in November 2001 for the 34-acre site and secured a $25.3 million construction loan through BankAtlantic to build the apartments.
That's a construction value of about $55,482 a unit.
The Dallas-based multifamily developer still owns 432 rental units at Alexan at Crescent Place and 204 units at Watermark 6000, both in Brandon; Centergate Lansbrook Village, 254 units, Palm Harbor; and Vinings at Hunter's Green, 240 units in North Tampa.
In a release, the Santa Ana REIT announced it bought the property with intentions to continue leasing operations through a master-lease trust. At the time of sale, the property had occupancy of about 92%.
Cushman & Wakefield's Byron Moger represented the seller, with Triple Net's Steve Corea and Seth Harris representing the tenant-in-common buyers.
Cohen Financial's Mark Strauss arranged $35.3 million in financing for the deal through Deutsche Bank Mortgage Capital LLC.
Founded in the late 1990s, the REIT manages a portfolio that consists of about 23.7 million square feet of commercial property and 1.1 million square feet of multifamily property with a market value of about $2.9 million.
This is the REIT's first multifamily acquisition in the Tampa Bay area. In Tampa, the REIT manages 919,405 square feet of office space in [email protected], 222,783 square feet of office space in the Lakeside Technology Center and 77,675 square feet in the Buschwood Office Park.
Sun Vista affiliate acquires
Gulfport's Bayfront Villas
BUYER: Gulfport Investment Partners LLC, St. Petersburg.
SELLER: Windsor Square Apartments Inc., Tampa
PROPERTY: 3209 58th St. S., Gulfport.
PRIOR SALE: $6,350,000 in 2003
LAW FRIM ON DEED: Trenam Kemker Scharf Barkin Frye O'Neill & Mullis PA.
PLANS, DESCRIPTION: The recent sale of Gulfport's Bayfront Villas apartments signals the start of yet another condominium-conversion project for St. Petersburg's Sun Vista Development Group LLC.
Earlier this month, the investment group controlled by John Loder and Steven Gianfilippo paid $12.9 million for the 121-unit rental property, 3209 58th St. S. That's about $106,612 a unit or $3.45 million an acre for the 3.7-acre waterfront site.
The sale compares with the $6.35 million, or $52,479 a unit, Tampa's Windsor Square Apartments Inc. paid in August 2003 for the property. That's a 103% increase in the purchase price.
Such an escalation in price reflects a trend that has taken hold over the past few years in the Tampa Bay area. For instance, this property sold in 1999 for about $4.3 million, or $35,331 a unit. That's only about a 49% increase in purchase price.
The sale follows efforts by Tampa attorney Steve Cheeseman, Windsor Square's president, to find a joint-venture partner for a conversion. He retained Sarasota's Nationwide Hotel Brokers of Florida Inc. to market the property as suitable for 112 condo units in four, 11-story buildings.
The Sun Vista affiliate financed the Bayfront Villas acquisition with a $17.4 million mortgage through Fremont Investment & Loan and a $2.8 million mortgage through American Mortgage Acceptance Co.
Just recently, another Sun Vista affiliate paid $29 million for the 198-unit Pasadena apartments in South Pasadena. That's about $146,465 a unit for the property at 1885 Shore Drive. It, too, is a condo-conversion project.
Besides those two condo-conversion projects, a Sun Vista affiliate paid $18.5 million last November for the 164-unit Indian Pass apartments in Indian Shores.
Over the past several years, the Sun Vista group principally has focused its acquisition strategy on under-used residential and small commercial properties along the waterfront in Pinellas County.
Coral Gables group buys
BUYER: Grand Reserve Condominiums at Tampa LLC, Coral Gables.
SELLER: Fairfield Montecito LLC, San Diego.
PROPERTY: 4255 W. Humphrey St., unincorporated Hillsborough County.
PRIOR SALE: $18,400,000 in March 2003.
LAWYER ON DEED: Oscar J. Vila, Coral Gables.
PLANS, DESCRIPTION: Yet another South Florida investment group has acquired an apartment complex it intends to convert to condominiums.
Coral Gables-based Grand Reserve Condominiums at Tampa LLC recently paid $28 million for the 384 rental units at Tampa's Montecito apartments, 4255 W. Humphrey St.
State corporate records list real estate attorneys Carlos E. Padron and Oscar J. Vila, partners at Coral Gables' Vila Padron Diaz PA, as Grand Reserve's managing members. Neither of them responded to a request for comment.
A leasing agent at the Tampa rental property acknowledges the new owner plans to covert the rental units into condos. The agent doesn't expect the new owner to announce the availability of condo units for a couple more weeks.
The purchase price is about 52% more than an affiliate of San Diego's Fairfield Residential LLC paid in March 2003 for the 46 two-story buildings north of Waters Avenue and just off Manhattan Avenue. Fairfield Montecito LLC paid about $47,917 each in 2003 for the 384 garden-style units constructed on 40 acres of land. Units contain an average of 787 square feet.
Built in 1988, the apartment community includes a private clubhouse, pool, sauna, a fitness center and tennis courts.
The South Florida investment group financed the recent purchase with a $24.5 million mortgage through U.S. Century Bank. The mortgage agreement allows for future advances of up to $40 million.
Prior to converting the apartments into condos, the mortgage states, the South Florida investment group must first enter into qualified pre-sales of no less than $13.5 million. Pre-sales require earnest money deposits of at least 5% per condo unit from qualified buyers.
Atlantic American affiliate
pays $22 million for rentals
BUYER: Bentley at Cobb's Landing LLC, Tampa.
SELLER: Grandeville at Cobb's Landing LLC, Altamonte Springs.
PROPERTY: 200 Bentley Drive, Palm Harbor.
PRIOR SALE: $12,125,000 in August 2001.
LAWYER ON DEED: Murai Wald Biondo Moreno & Brochin PA, Coral Gables.
PLANS, DESCRIPTION: Tampa's Atlantic American Realty Group LLC plans to convert into condos the 200 apartments at Palm Harbor's Grandeville at Cobb's Landing apartments. The affiliated Bentley at Cobb's Landing LLC purchased the property earlier this month for $21.5 million, or about $107,500 a unit.
The purchase price is about 77% more than the prior sale. Four years ago, an affiliate of Altamonte Springs investor Salvador Leccese bought the property for $12.1 million.
Earlier this month, the Atlantic American affiliate filed a notice to begin interior and exterior renovations on the 15-year-old property, 200 Bentley Drive. A spokeswoman for the parent company confirmed its intent to convert the apartments into condos.
It appears the buyer has up to $4 million in renovation funds. The affiliate, a company that lists Tampa real estate executive Debra Koehler as president, financed the acquisition with a $25 million loan through KeyBank NA. Koehler signed the mortgage, with Tampa investor Robert Moreyra signing as a witness.
Koehler and Robert Moreyra are direct and indirect members in Atlantic American Realty, state corporate records show. Koehler, formerly a senior executive at Tampa's Wilson Co., and Deborah Moreyra serve as managing members along with Atlantic American Corporate Group LLC.
Several corporate groups serve as managing members of Atlantic American Corporate Group. They include Atlantic American Holdings Inc., Colonial Park Property Holdings LLC, 4C Partners LP and BAG Holdings LLC. Records list Robert Moreyra as Colonial Park's managing member and Tampa investor Brad Gordon as BAG Holdings' managing member.
Miami investors purchase
Cypress Pointe apartments
BUYER: Cypress Pointe Tampa Ltd., Miami.
SELLER: Jackson Square Properties LLC, San Francisco.
PROPERTY: 5119 E. Fletcher Ave.
PRIOR SALE: $5,923,000 in 2000
LAW FRIM ON DEED: Machado & Xiques LLP, Coral Gables.
PLANS, DESCRIPTION: Miami's Cypress Pointe Tampa Ltd. paid almost $11.3 million for the 148 rental units at Tampa's Cypress Pointe apartments, 5119 E. Fletcher Ave.
The buyer, controlled buy Miami real estate investor Ralph Velocci, paid about $76,149 a unit for the eight buildings built in 1986 on the 9.6-acre site.
Velocci's partnership paid about 47% more than the property's prior sale. San Francisco's Jackson Square Properties LLC paid $5,923,000 in 2000 for the rental property.
Velocci could not be reached for comment on the company's plans for the apartment complex. To finance the deal, Velocci's group obtained a $13.7 million mortgage through FirstBank Puerto Rico. The mortgage allows for future advances of up to $27.3 million.