Tampa low-income apartments sell for $30M, $24M in renovations planned

Fairstead, a New York-based real estate company focused on affordable housing, has bought a 200-unit apartment complex in Tampa and plans a major renovation of the 53-year-old community.

The firm’s purchase is of the Silver Oaks Apartments at 4200 Kenneth Court, just off of Hillsborough Avenue east of Interstate 275. It paid $30.7 million for the property and will spend another $24 million on making improvements.

According to a statement announcing the purchase, the funding came from a Freddie Mac loan secured by Lument, tax credit equity from PNC Bank and tax-exempt bonds issued by the Hillsborough County Housing Finance Authority working with the Florida Housing Finance Corp.

Silver Oaks was built in 1973 and is made up of eight three-story buildings sitting on 6.7 acres. Its apartment mix includes 33 one-bedroom units, 127 two-bedroom units and 40 three-bedroom units. There is also a community building on the property.

The complex is governed by Section 8 and Low-Income Housing Tax Credit affordability restrictions, with all units reserved for households earning up to 60% of the Area Median Income, Fairstead says in the statement.

The firm’s plans for Silver Oaks call for “extensive in-unit and exterior renovations to all apartment homes and shared spaces, designed to enhance operational efficiencies and elevate the resident experience.”

The renovations include:

• Updated interiors in all residential units
• Adding in-unit washers and dryers
• Energy efficiency and sustainability improvements
• Mechanical, electrical and plumbing system upgrades
• Building exterior and site infrastructure improvements
• Security and access control upgrades
• Renovated common areas and community spaces, including new playgrounds and an exercise room

The work is expected to begin midway through the year and for it to be completed late next year. 

In addition to the physical improvements, the firm will introduce resident programs including financial literacy workshops, health and wellness classes, career training and personal development.

Residents will also get free cable and internet service.

New York City-based Fairstead owns, manages and has in pre-development more than 30,000 apartment units across 28 states. About 2,000 of those are in Florida, including the Goodlette Arms Apartments at 948 Goodlette Frank Road in Naples.