29th Street Capital acquired Henley Tampa Palms and Enclave at Northwood
for $112 million
Berkadia announces it has secured $91 million in financing for the acquisition of two multifamily properties in the Tampa Bay area: Henley Tampa Palms, a 315-unit apartment community in Tampa, and Enclave at Northwood, a 188-unit apartment community in Clearwater, Florida. Senior Managing Director Mitch Sinberg of Berkadia Boca Raton, Managing Director Brad Williamson of Berkadia Miami, Senior Director Justin Ownby of Berkadia Tampa, and Associate Director Wesley Moczul of Berkadia Orlando arranged the financing for the $112 million sale on behalf of 29th Street Capital (29SC), a privately held real estate investment firm that focuses on acquisition and development of multifamily assets. Formed in 2009, 29SC’s current portfolio consists of more than 17,000 existing units and a new construction pipeline of over 3,500 units.
PGIM Real Estate originated the 3-year, floating rate loan with extension options, and a sub-3 percent interest rate. The loan includes $85.4 million in initial funding, with $6.09 million in future funding for capital improvements.
“The Tampa metro area has benefitted from a roaring Sunbelt surge,” said Williamson. “While the pandemic curbed apartment demand nationwide due to public health lockdowns, the greater Tampa-St. Petersburg bucked the U.S. trend, and leasing activity in the second quarter was nearly double the new supply. This acquisition illustrates the strong investor demand for well-located multifamily assets in region.”
Trevor Arnholt, vice president at PGIM Real Estate, who led the origination of the loan on the firm’s behalf, added, “PGIM Real Estate’s appetite for core plus lending remains robust, particularly for multifamily assets located in Florida and other key U.S. growth markets.”
“We target irreplaceable assets in desirable locations,” said Christopher Steiner, VP of Acquisitions for 29SC in Florida. “These properties are two more superb additions to a coast-to-coast multifamily portfolio that our team has expanded by more than 4,500 units across 20 acquisitions last year.”
According to Berkadia’s Mid-Year Multifamily Report for Tampa-St. Petersburg, over $1 billion of multifamily assets in the metro traded in the first half of 2021, with an average cap rate of 4.5 percent. The metro’s local workforce experienced a speedy recovery, operating at 98% of pre-COVID levels by June 2021, even as leisure and tourism-related businesses struggled to attract workers. A significant contributor to the employment rebound was hiring in the market’s largest employment sector: professional and business services. The sector’s headcount grew 9.8%, or by 23,400 net positions, in the last 12 months.
Tampa’s downtown has also experienced a wave of construction projects expected to bring an estimated $13 billion worth of investment to the city through 2022.
Built in 1997, Henley Tampa Palms is located at 15350 Amberly Drive. One-, two-, three-bedroom units feature nine-foot ceilings, attached garages, oversized closets, stainless steel appliances, sunken living rooms, plank flooring, a fireplace and patio. Community amenities include a resort-style pool, fitness center, clubhouse, dog park and climate controlled racquetball courts. The property is in close proximity to The Shoppes of Amberly, and there are five parks within five miles of the property. Tampa International Airport is a half hour away.
Built in 1985, Enclave at Northwood is located at 2690 Enterprise Road East. One-, two and three-bedroom units feature a fireplace, hardwood floors, granite countertops, vaulted ceilings, walk-in closets, washer and dryers and spacious terraces and balconies. Community amenities include two pools, a resident clubhouse, tennis court, fitness center and lush landscaping. Enclave at Northwood is located a half hour from the Saint Petersburg-Clearwater International Airport and offers easy access to top-quality schools, parks and the Westfield Countryside Mall.