TAMPA, Fl - Cushman & Wakefield has arranged the sale of Southern Cove Apartments, a 180-unit, garden-style rental community in Tampa’s Temple Terrace submarket. The value-add asset sold for $20.59 million, or $114,389 per unit.
Executive Managing Director Nicholas Meoli and Executive Managing Director Michael Donaldson, with Cushman & Wakefield’s Florida Multifamily Investment Sales Team, represented Styles Holdings in the disposition. The Miami-based privately held company owns and operates high-quality multifamily real estate in major markets throughout the country.
The buyer is 29th Street Capital, a privately held real estate investment firm with offices in San Francisco and Chicago.
At 8741 Grove Terrace, Southern Cove Apartments sits on nine acres in a low-density setting of 19.67 units per acre. All units have two bedrooms and average 1,104 square feet. The property was 96% occupied at the time of sale with an average market rent of $988.
The property was built in 1974 and has been recently updated. Approximately 75% of units were upgraded with black appliances and new countertops in the kitchen and bathroom, and approximately 50% of units also received new vinyl plank flooring. Amenities include a swimming pool with pavered sundeck, clubhouse, dog park, tennis court, on-site laundry, controlled gated access and camera security throughout the property.
Southern Cove’s location in the heart of Temple Terrace positions it at the center of a $1.5 billion redevelopment project created by the Tampa Innovation Alliance, which is poised to benefit the surrounding area. The property is approximately three miles from both the University of South Florida campus and Tampa’s renowned Busch Gardens theme park and is convenient to the major thoroughfares of Interstate 75 and Interstate 275, which provide connectivity throughout the Tampa Bay area.
“Southern Cove represented a strong value-add opportunity to acquire a 180-unit multifamily community consisting of all two-bedroom floor plans,” said Meoli. “Given the property’s central location within the Tampa Innovation Alliance district, desirable unit make-up and strong upside potential, we generated significant interest from the investment community resulting in a competitive bidding atmosphere.”
“Southern Cove provides some of the largest floor plans in the immediate submarket. Majority of the units are in classic condition, which will allow the buyer to focus on full interior renovations with projected rent premiums of over $200,” added Donaldson.
Cushman & Wakefield’s Florida Multifamily Team represents investors and owners in the sale of existing multifamily properties and developable land throughout the state. The team also facilitates debt, equity and structured financing.
About Cushman & Wakefield: Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries. In 2019, the firm had revenue of $8.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.