Eagle Property Capital & Promecap Acquire Two Adjacent Hotels in Tampa Bay for Multifamily Conversion
09 May 2022
The TownePlace Suites by Marriott & Residence Inn by Marriott will be transformed into a 183-unit apartment community called “Pelican Lake” to address the ongoing workforce housing shortage
Clearwater, Fla. (May 4, 2022) – Eagle Property Capital Investments, LLC (“EPC”), a vertically integrated real estate investment manager focused on the value-add multifamily space, and its joint venture partner Promecap, a leading private equity firm based in Mexico City, announce the acquisition of two extended stay hotels in the Tampa Bay area that will be converted to apartments. EPC Promecap Multifamily Partners V, LLC (“Fund V”) acquired the 95-room TownePlace Suites by Marriott St. Petersburg Clearwater and the 88-room Residence Inn by Marriott St. Petersburg Clearwater. The properties are conveniently located just 1.5 miles from St. Petersburg/Clearwater International Airport, and 25 minutes from both downtown Tampa and downtown Clearwater.
EPC, an experienced multifamily owner-operator with a portfolio of over 6,600 apartment units (including 840 in the Tampa Bay area), intends to consolidate, reposition and rebrand the properties as “Pelican Lake Apartments.” It will offer a mix of 183 studio, one- and two-bedroom apartments ranging from 500 to 850 square feet, along with a host of resident amenities.
“This was an exciting and rare opportunity to expand our footprint in the Tampa market by taking two centrally located extended stay hotels and transforming them into much-needed workforce housing,” said Rodrigo Conesa, Managing Principal at Eagle Property Capital Investments. “Negotiations for these two hotels began during the peak of the COVID-19 crisis, allowing us to negotiate an attractive price for two high-quality properties that are ideally suited for conversion to apartments.”
Added Fernando Pacheco, Managing Principal at Promecap, “Located at the nexus of West and South Tampa, both bustling corporate hubs surrounded by large employers and close to major transportation corridors, these properties offer renters an excellent location close to thousands of jobs, along with cultural/entertainment destinations and the beautiful Gulf Coast beaches.”
Tampa Bay is the third-most popular city people are looking to move to, according to a 2022 data analysis from real estate firm Redfin. Tampa also saw rents increase approximately 30 percent year over year on account of population growth and strong demand.
Built in 1999, TownePlace Suites is located at 13200 49th Street North and Residence Inn, built in 1986, is located at 5050 Ulmerton Road. The combined properties consist of 14 three-story buildings and 209 parking spaces on 11.19 acres. About 70 percent of the hotel rooms will be converted to efficiencies or studio apartments; the remainder will be one- and two-bedroom apartments. Both properties offer a sparkling lake, fitness center, swimming pool, business center, clubhouse, BBQ area and outdoor kitchen, and laundry facility. Future improvements will include renovations to bring amenity and landscaping up to multifamily industry standards; renovation of unit interiors; and installation of approximately 30 carports.
Pelican Lake is located in Tampa, Florida’s second-largest metropolitan area, with over 3.2 million residents. It is home to the University of South Florida, MacDill Air Force Base, BayCare Health System and five Fortune 500 headquarters.
A niche player in the multifamily space, EPC has demonstrated success in catering to the middle-income Hispanic market, the fastest-growing demographic in the United States. According to data from the 2020 Census, the Hispanic or Latino population grew from 50.5 million (16.3% of the U.S. population) in 2010 to 62.1 million (18.7%) in 2020. Fund V focuses its investment strategy on high growth cities with strong fundamentals and high Hispanic presence that have benefited and will continue to benefit from in-migration from other states, limited supply of single-family homes and favorable regulatory and tax environments.
Since 2011, EPC has launched seven investment vehicles with over $480 million in equity commitments and completed $1.1 billion in transactional volume. EPC’s historically successful track record includes producing above target returns to investors in four realized investment vehicles.
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About Eagle Property Capital Investments
Eagle Property Capital Investments is a vertically integrated real estate investment manager pursuing value-add investment strategies through the acquisition, reposition, and management of multifamily apartment properties in Florida and Texas. Since 2011, EPC and its affiliates have acquired 39 multifamily residential properties containing over 9,300 apartment units. To learn more about EPC, visit www.eaglepropertycapital.com
Founded by Fernando Chico Pardo in 1997, Promecap is an institutional private equity firm based in Mexico City. To date, Promecap directly and through its private equity platform has completed over 70 investments and has more than US$3.3 billion in assets under management. Promecap is composed of a diverse team of seasoned investors with strong track record in multiple asset classes including structured debt, distressed assets, preferred equity and common equity through both private and public investments.