TAMPA, FL-In a rare bulk deal, Allegro Palm, a 432-unit condominium community in Riverview, traded for $10.275 million. That represents $50,368 per unit and $49 per square foot.
Still Hunter, III and Evan P. Kristol, senior vice presidents investments in Marcus & Millichap’s Fort Lauderdale office, represented the seller, a South American investment group.
“The seller acquired the property a few years ago from Corus Bank and the FDIC,” Kristol tells GlobeSt.com. “They turned a distressed property completely around, stabilizing the HOA, cleaning up the property and leasing it up. It was almost fully occupied and the HOA had reserves.”
Allegro Palm was built in 2000 as a class A apartment community. In March 2005, the apartments were converted to condos. The developer sold more than 200 condominiums at an average price of nearly $175,000 per unit before sales stalled.
“The seller acquired the 199 units for $6.25 million 25 months ago at a 3.51 cap rate and sold it at $10.275 million at an 8.78 cap rate,” Kristol says. “They sold 204 units, but essentially they more than doubled the cap rate and made a nice profit.”
The Allegro Palm property is located at 5501 Legacy Crescent Place. The site is about 14 miles from Tampa near Ybor City, Interstate 75 and Lee Roy Selmon Expressway.
The property has seven floor plans with 76 percent two-, three- and four-bedroom units. The living spaces feature ceramic tiling, built-in shelving, large walk-in closets and vaulted ceilings. Community amenities include two resort-style pools, outdoor lounge with fireplace and basketball and tennis courts.
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