The red-hot apartment market cycle shows no signs of abating.
At least not at Tampa-based Franklin Street, where the firm's multifamily brokerage team arranged $103.8 million in apartment sales in Florida in the first quarter. The team includes Darron Kattan, Kevin Kelleher, Zachary Ames and Robert Goldfinger.
The surge, says Kattan, managing director at Franklin Street, stems mostly from the basics: fast job growth, solid economic fundamentals and high rental demand. “We have a flood of capital chasing a finite number of deals and that has created a very competitive market,” Kattan adds in a statement.
Unlike in a few other markets, some buyers aren't holding out for A properties. “The market for B and C Class apartment properties in particular is hotter now than it has been for a decade,” Kelleher says in the statement. “We are seeing interest from a variety of different buyers that include institutional players all the way to mom-and-pop operators.”
Multifamily transactions arranged by the Franklin Street team in the first quarter of 2017 include:
• Oak Bend: Represented the buyer and seller, both private clients, in the sale of a 112-unit rental community at 1550 University Woods Place, Tampa, for $6.7 million. The buyer is a Canadian-based client looking to diversify and expand holdings in Florida.
• River View: Represented the buyer and seller in the sale of a 296-unit apartment property at 5659 Del Prado Drive, Tampa, for $23.4 million. The buyer is a New York-based real estate company that has recently bought a significant amount of properties in Florida;
• Liv at Dunedin: Represented the buyer and seller, both private clients, in the sale of a 178-unit rental community at 1763 Main St., Dunedin, for $22.45 million. The property sold for a record price, having just come out of a major renovation where rents increased more than 40% in a two-year period.
The multifamily foursome at Franklin Street has 60 years of combined experience with apartment communities in the Tampa Bay Region, the firm says. The team has represented more than 6,000 multifamily units valued at nearly $400 million since 2015.