Plenty of Competition for This Ybor City Multifamily Deal

Haciendas de Ybor, a 99-unit project-based senior Section 8 multifamily community located in Tampa, FL, just sold.

ORLANDO—Haciendas de Ybor, a 99-unit project-based senior Section 8 multifamily community located in Tampa, FL, just sold. And there was plenty of competition on the deal. Marcus & Millichap senior associate Lisa Baez and vice president of investments Casey Babb represented the seller, a private investor. The duo also represented the buyer, also a private investor. “Haciendas de Ybor was a highly sought offering considering its desirable urban location near Downtown Tampa coupled with the fact that it had a 20-year senior HAP contract in place with 19 years remaining,” says Babb. Haciendas de Ybor is located at 1510 East Palm Avenue in the Ybor City submarket of Tampa , near the Tampa Central Business District. The property was originally developed in 1970 under the HUD 236 program and has provided affordable housing for seniors age 62 and over since its doors opened. There are two, two-story, elevator-served apartment buildings are on a 3.15-acre site that features a mature oak tree canopy across the property. “Within a short period of time, our marketing campaign generated nine written offers resulting in a sale at 100% of the list price,” Baez says. “The buyer in turn was able to acquire a fully stabilized asset with a safe and reliable income stream in place for years to come.” The buildings house 99 apartment homes, a central leasing office and club and activity room. Apartments are a mix of 68 studios and 31 one-bedroom/one-bathroom units. Amenities include an on-site leasing office with 24-hours desk clerk, a community club room, four laundry facilities and a mobile public library. Class A caps were driven down to 3% to 6% in most markets leaving investors seeking stronger returns in outlying markets where there had previously been less competition, Kurt Westfield , managing director of WC Companies, tells GlobeSt.com. For the rest of 2016, he expects just as much investment if not more. “Major economic drivers have maintained a strong presence from leveraged and financed investors and cash sales still make up an above-average chunk of the investment-class assets being purchased,” Westfield says. “Property values have risen, dramatically in our local market, amongst most major metro regions nationwide and rental rates continue to rise, promoting strong investment opportunities across the board in the multifamily sector.”