The transaction is comprised of two garden-style apartment communities totaling over 500 units in the Tampa Bay MSA
TAMPA, FLORIDA (September 17, 2021) – Luis Elorza, managing director, and Justin Hofford, senior associate with NorthMarq Tampa’s Investment Sales team arranged the sale of Henley Tampa Palms and Enclave at Northwood to 29th Street Capital, a privately held real estate investment firm that focuses on acquisition and development of multifamily assets. NorthMarq represented the seller, Preston Giuliano Capital Partners, a private investment firm with multifamily properties throughout Florida. The sale represented record-setting pricing within the Tampa Bay MSA for both 1990s and 1980s-built communities.
“NorthMarq was instrumental in facilitating an intricate off-market transaction through constant communication and support,” said Christopher Steiner, VP of Acquisitions in Florida for 29th Street Capital. “Our team is excited to bring further enhancements to these well-maintained properties as we expand a coast-to-coast portfolio of more than 17,000 multifamily units.”
Henley Tampa Palms, located at 15350 Amberly Drive, totals 315 units, and is located in the highly desirable community of Tampa Palms. Enclave at Northwood, located at 2690 Enterprise Road East, totals 188 units and is located in northeast Clearwater proximate to the historic districts of downtown Dunedin and downtown Safety Harbor.
“Henley Tampa Palms and Enclave at Northwood represented a rare opportunity for the buyer to not only purchase two value-add assets in highly desirable areas, but also to acquire scale in one of the best performing markets within the nation. 29th Street Capital plans to further enhance the properties, repositioning them to compete with best-in-class assets within their respected markets,” said Elorza, “The ability to capture record-setting organic rent growth in addition to capturing additional rent growth through renovations makes this a great investment opportunity for the buyer.”
Built in 1997, Henley Tampa Palms is located within the Tampa Palms master-planned community and features a two-story, walk-up construction style with a low-density site plan on 23.0 acres. The community is nestled around a large lake and features larger-than-average unit sizes (1,375 square feet), giving the property a competitive advantage with today’s renters targeting larger spaces and lower density. The property is comprised of 17% one-bedroom, 50% two-bedroom and 33% three-bedroom units. Residents enjoy a clubhouse with racquetball courts, 24-hour fitness center, resort-style pool with a screened lanai and poolside grills, Luxer One Package lockers and a dog park. Unit interiors feature granite or formica countertops, stainless steel or black appliances, dramatic 9-foot ceilings with crown molding, sunken living rooms and attached garages.
Enclave at Northwood was built in 1984 and features a concrete-block, villa or townhome construction style, offering a private-neighborhood feel. The property has a low-density site plan on 22.2 acres and is comprised of 45% one-bedroom, 53% two-bedroom and 2% three-bedroom units with an average unit size of 1,076 square feet. Enclave at Northwood’s amenity package features a clubhouse with a fully equipped fitness centers, lighted tennis courts, relaxing swimming pools, BBQ grills with a picnic area and is located adjacent to the expansive Clearwater Enterprise public dog park. Unit interiors feature granite or formica countertops, stainless steel or black appliances, vaulted ceilings, screened lanais, fireplaces and private backyards in most units.
“Both properties were extremely attractive to the buyer due to their in-fill locations with high barriers to entry with great connectivity and proximity to employment drivers. Both locations are located within highly desirable areas that will continue to attract quality tenants into the foreseeable future,” Hofford added.
The Tampa multifamily market recorded a particularly strong performance this year, highlighted by the dramatic increase of white-collar jobs in traditional high-wage industries and rent growth accelerating at a record-setting pace. The professional and business services sector, which grew at an average pace of nearly 4 percent per year from 2014 to 2019, has expanded by more than 10 percent in the past year. Current employment totals in the professional and business services sector are up more than 5 percent from the pre-COVID peak. With the labor market fueling renter demand, vacancy levels are forecast to continue to tighten and rents, which already surged approximately 20 percent, will continue to grow, and expected to post the strongest gain in the nation this year. With its strong market fundamentals, the metropolitan area is well positioned for continued investor demand for quality assets such as Henley Tampa Palms and Enclave at Northwood.