Marcus & Millichap's National Multi Housing Group, with offices in Tampa and Fort Myers, brokered the sale in conjunction with the firm's Seattle-based Tax Credit Group on behalf of FHFC. The property was recently removed from the Section 42 Low Income Housing Tax Credit program and now lists market-rate asking rents between $500 and $750 per month.
"Riley Chase's solid intrinsic value and upside potential, coupled with its low price per unit, made the property a very attractive investment opportunity," says Jamie May, senior director with Marcus & Millichap NMHG in Tampa. He notes that the property received "overwhelming response" with offers from more than 40 investors.
Riley Chase, which opened in 2001, totals 288,000 square feet of net rentable area with units ranging from 687 to 1,160 square feet in three-story buildings built from wood and stucco. The complex is in close proximity to Interstate 75 and several large employers.
May says his affiliate group, JBM of Marcus & Millichap, has handled sales of 1,500 apartment units near the Gulf of Mexico coast over the past two months, indicating strong multifamily investment interest in the region. He adds that Southwest Florida is poised for economic recovery and long-term growth, with cap rates for local apartments trending in the 7% range for A-minus and B classes.
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