TAMPA, FL-Westbury at Lake Brandon Apartments, a 366-unit class A apartment community, has traded for $33.1 million, or $90,437 per unit. The asset is located Brandon, about 15 minutes from downtown Tampa.
John Selby and Jim Bobbitt of CBRE’s Multi-Housing Group in Tampa handled the transaction on behalf of the seller, Westbury Owner. Alliance Residential Company, a private investment company based in Phoenix, snapped up the property through the bankruptcy trustee. CW Capital financed the deal.
“There was a lot of interest and demand for this property,” Bobbitt, a senior vice president at CBRE, tells GlobeSt.com. “The asset does need some minor upgrades, but the low interest rate environment and the low cap rate drew strong investor demand from institutional and private investors.”
Constructed in 2002, Westbury offers one-, two- and three-bedroom units averaging 988 square feet with both attached and detached garages. At the time of sale, the property was approximately 94% occupied with rental rates averaging over $975 per month. Alliance plans to invest into the community and rebrand it under firm’s Broadstone community name.
“This represented an excellent distressed acquisition opportunity for a core-quality asset that was overleveraged and suffered from a lack of capital and management focus, given its financial stress,” says Alliance CFO V. Jay Hiemenz. “Alliance restructured the CMBS loan with the special servicer as part of the transaction, and will implement a management and capital plan to stabilize and add value to the community.”
Westbury at Lake Brandon is Alliance’s second community in the Tampa area. The company is currently under construction on Broadstone Citrus Park, a luxury multifamily development within the Citrus Park Village bedroom community, which is scheduled for completion in mid-2012.
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