TAMPA, FL - Trilogy Real Estate Group, a Chicago-based real estate investment and property management firm, announced the acquisition of Azalea Apartments, a 289-unit multifamily community that is currently under construction in the East Tampa neighborhood of Brandon, for $85.8 million. Azalea will join Trilogy's growing portfolio of investments located in qualified opportunity zones.
Investments in qualified opportunity zones benefit from the provisions of the 2017 Tax Cuts and Jobs Act that allow the taxes on capital gains realized from the sale of almost any asset, such as stocks, bonds, businesses, real estate, and K-1 partnerships to be deferred by investing the gains in designated opportunity zones. The most significant benefit of the program is the permanent elimination of taxes on capital gains realized from the sale or exchange of an investment in a qualified opportunity zone fund that has been held for a minimum of 10 years.
"We are the beneficiaries of three years of development work that ZOM Living completed," said Trilogy chief investment officer Jesse Karasik. "Opportunity zone developments typically take multiple years to bring online and become cash flowing assets, and we are thrilled to have been positioned to acquire this high-quality property in a booming market near its completion."
Azalea is located at 8240 Causeway Boulevard, minutes from Tampa's urban core and in one of the fastest-growing counties in the country. The first move-ins at the property are expected to begin this quarter, and residents will be able to choose from one-, two-, and three-bedroom layouts ranging from 700 to 1,400 square feet. ZOM Living sold Azalea to Trilogy and will manage its construction through completion.
Each apartment home at Azalea features energy-efficient, stainless steel Whirlpool appliances, quartz countertops, contemporary cabinets with upgraded hardware and soft-close drawers, and hurricane impact windows. Luxury living extends throughout the community with a resort-style pool deck with cabanas, and a relaxation area with hammocks and fire pit. There's also a fitness center with a spinning studio and an outdoor yoga lawn, multi-use event lawn, pool pavilion, and gaming area with a pool table and corn hole. The pet-friendly community will also offer an oak tree-shaded, fenced dog park and pet salon.
"We continue to focus on delivering cycle-resistant investor returns, which today's market environment provides for via attractive multifamily investment opportunities," said Matt Leiter, chief financial officer. "While all of our investments are selected based on their viability independent of any potential tax benefits, the qualified opportunity zone program can provide a meaningful enhancement to investor returns."