Download Tampa AMERICAS MarketBeat Multifamily Q22014

MARKETBEAT
MULTIFAMILY SNAPSHOT
TAMPA BAY, FL
MID-YEAR 2014
A Cushman & Wakefield Research Publication
OUTLOOK
Investor interest in multifamily housing remains strong
notwithstanding increased volatility in interest rates. Low leverage
investors continue to pursue core opportunities, particularly the
new urban product. Conduit, Life Company and Bank debt
continues to augment availability of agency financing.
30 Year Treasury Interest
Rate
3.8%
3.0%
4.8%
Core CPI Growth
1.5%
1.9%
2.2%
2013
2014F
2015F
Unemployment
7.3%
6.3%
6.5%
Employment Growth
2.8%
3.3%
2.1%
Population Growth
0.9%
0.8%
1.0%
$44,886
$46,159
$48,064
LOCAL
Median Household Income
Source: Moody’s Analytics
MARKET FUNDAMENTALS
12.0%
$950
$925
$900
$875
$850
$825
$800
$775
$750
10.0%
8.0%
6.0%
4.0%
$923
There are approximately 867 existing properties in the Tampa Bay
MSA, totaling 193,000 units. A total of 2,314 new units have been
completed during the first half of the year, and there are another
5,868 units currently under construction within the market.
3.7%
$901
TAMPA MSA MARKET RATE SUPPLY
2015F
1.7%
$875
Market-wide vacancy remained flat at approximately 6.0% over the
past 12months. Average rents have increased 3.0% to $923 per
month during the past year and concessions, which were prevalent
in previous years, have been reduced significantly.
2014F
1.9%
$837
Continued employment growth and a greater propensity to rent
bolstered rental demand. New additions to supply have been
increasing throughout the region, but absorption still exceeds
deliveries. Favorable supply and demand have resulted in increasing
occupancy and rents throughout Tampa Bay.
2013
US GDP Growth
$825
APARTMENT OVERVIEW
NATIONAL
$808
The Tampa Bay economy continues to grow,
recording nearly 38,000 new jobs added over
the past 12 months. Hospitality, financial and
business services remain the dominant drivers
of the area’s economy. Additionally, the
recent revival in the housing market, a substantial increase in
population growth and improved confidence among consumers have
all contributed to the improving economy.
ECONOMIC INDICATORS
Rent/Mo.
ECONOMIC OVERVIEW
2008
2009
2010
2011
2012
Q2 13
OVERALL GROSS RENTAL RATE
2.0%
0.0%
OVERALL VACANCY RATE
Source: Real Data
CAP RATE COMPARISONS
10.0%
8.0%
6.0%
4.0%
2.0%
TAMPA
U.S.
0.0%
2006 2007 2008 2009 2010 2011 2012 2013 Q2 14
Source: Real Capital Analytics, Cushman & Wakefield Research
Cushman & Wakefield of Florida, Inc.
One Tampa City Center, Suite 3600
Tampa, FL 33602
www.cushmanwakefield.com/knowledge
For more information, contact:
Byron Moger, Executive Director
813 223 6300
[email protected]
The market terms and definitions in this report are based on NAIOP standards. No
warranty or representation, express or implied, is made to the accuracy or completeness
of the information contained herein, and same is submitted subject to errors, omissions,
change of price, rental or other conditions, withdrawal without notice, and to any special
listing conditions imposed by our principals.
© 2014 Cushman & Wakefield, Inc. All rights reserved.
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INVESTMENT SALES
Transaction volume of $865 million year-to-date through July 2014 is
65% of the $1.3 billion figure recorded for the entire year in 2013.
According to Real Capital Analytics, the average sale price for
apartments thus far in 2014 is $85,000 per unit. This represents an
increase of 14% from the same period in 2013. We anticipate full year
2014 will be comparable to 2013 in terms of transaction volume and
cap rates will remain compressed.
The largest transaction of the first quarter was the $76.5 million
acquisition of Pierhouse Channelside (a midrise 356-unit complex
with structured parking) by Heitman of Chicago on behalf of Florida’s
State Board of Administration Pension Fund (SBA) for $215,000 per
unit.
Carroll Organization purchased West Park Village, a 40-building
residential and retail property with a total of 617 units, in the
Westchase neighborhood of Tampa. Built in 2001, the Carroll
Organization paid $199,000 per unit.
Another noteworthy purchase was Realco Capital Partners’
acquisition of Campus Club, a 64-unit student property near the
University of South Florida in Tampa. The purchase price for the
property was $10.5 million, or $164,000 per unit.
Promenade at Carillon, a 334-unit property located in the Carillon
neighborhood of St. Petersburg, was purchased by TA Associates
Realty of Boston, MA for $45.8 million or $137,000 per unit.
IMT RE Group acquired Tuscany Bay in January for $44.6 million for
the community in Tampa. The property was constructed in 1999 and
sold for $120,000 per unit.
Consolidated Asset Management closed on Snell Isle in the second
quarter for $32.4 million. The 273 unit property, located in the Old
Northeast neighborhood of St. Petersburg, was acquired for $118,000
per unit.
Sherman Residential bought Enclave at Wiregrass in May. The sales
price was $36.1 million for the 312 unit community in Wesley Chapel.
The property was constructed in 2006 and sold for $116,000 per
unit.
SIGNIFICANT YTD 2014 APARTMENT SALES
PROPERTY NAME
CITY
BUYER
SELLER
# OF UNITS
TOTAL PURCHASE PRICE
PRICE/UNIT ($PSF)
Pierhouse Channelside
Tampa
Heitman obo SBA
Related
356
$76,540,000
$215,000
West Park Village
Tampa
Carroll Organization
JP Morgan
617
$122,500,000
$199,000
Campus Club
Tampa
Realco Capital Partners
Resource REIT
64
$10,500,000
$164,000
Promenade at Carillon
Tampa
TA Associates Realty
AREA Property Partners
334
$45,800,000
$137,000
Tuscany Bay
Tampa
IMT RE Group
Archon Group
370
$44,554,000
$120,000
Snell Isle
St. Pete
Consolidated Asset Mgmt.
Laramar Group
273
$32,395,195
$118,000
Enclave at Wiregrass
Wesley Chapel
Sherman Residential
Sentinel Real Estate
312
$36,100,000
$116,000
Preserve at Westchase
Tampa
IMT RE Group
Archon Group
300
$33,730,,333
$112,000
Preserve at Mobbly Bay
Tampa
Fairfield Residential
APD Custom Homes
316
$33,750,000
$107,000
Lansbrook Village
Palm Harbor
Carroll Organization
Waterton Associates
571
$58,500,000
$103,000
Sources: Real Capital Analytics, Cushman & Wakefield Research Services
Cushman & Wakefield of Florida, Inc.
One Tampa City Center, Suite 3600
Tampa, FL 33602
www.cushmanwakefield.com/knowledge
For more information, contact:
Byron Moger, Executive Director
813 223 6300
[email protected]
The market terms and definitions in this report are based on NAIOP standards. No
warranty or representation, express or implied, is made to the accuracy or completeness
of the information contained herein, and same is submitted subject to errors, omissions,
change of price, rental or other conditions, withdrawal without notice, and to any special
listing conditions imposed by our principals.
© 2014 Cushman & Wakefield, Inc. All rights reserved.
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