TAMPA-In a deal that was part of a 1031 exchange, the Villas at Legends Field Apartments has traded for $3.35 million. The sale represents $42,949 per unit and $73.02 per square foot.
Franklin Street managing directors Darron Kattan and Bob Goldfinger, along with director Kevin Kelleher, represented the seller, a South Florida-based private apartment owner who also managed the asset. The seller has a significant presence in the Tampa market. Franklin Street also represented the buyer, a private investor from California.
“After a few years of not doing, or really even seeing anyone do a transaction involving a 1031, it is starting to come back to our everyday lives as active brokers,” Kattan tells GlobeSt.com. “This buyer sold a property in California and bought three apartment communities in the Tampa Bay market, all with the proceeds from his first sale, and leveraged up all three acquisitions.”
By deferring the taxes and leveraging up the investments, Kattan says the buyer increased his overall returns and got a larger portfolio of properties that spread the risk and resulted in the ability to pay for a full-time management company. With an uptick in transactions, Kattan is making predictions for 2012.
“I speculate 2012 will see less multifamily deals involving lenders than ones involving a lender--such as an REO or short sale,” Kattan says. “We will see more clients completing 1031s. The political landscape could have a major impact and it may be that we don’t see 1031s at all in the future. But for now, they exist and seem to be coming back strong as a part of our everyday life as multifamily brokers in Florida.”
Located at 6059 N. Church Ave., the Villas at Legends Field is a class B turnkey investment. Franklin Street got the property under contract five days after listing it. Kattan says when he lists clean, stable assets he can find buyers ready to perform under tight due diligence time frames.
“The property closed in a timely manner at original contract terms. Out of state and overseas investors are particularly eager to find these types of transactions and we continue to find opportunities for them,” Kattan says. “The buyer was able to obtain new financing and it was a smooth transaction.”
Built in 1973, Villas at Legends Field Apartments has 78-units. It was completely renovated in 2006, including new kitchen and bathrooms cabinets, walls, flooring, roofs and windows. Amenities includes a business center, pool, private patios and valet trash service. The property is on two separate parcels that totaled about four acres of land.
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