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Multi-Family Market Summary & Activity Update Spring 2015
Tampa-ST. peTerSburg-ClearwaTer, Fl mSa
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TAMPAIntroduction
CAPSTONE APARTMENT PARTNERS prides itself on the continual value contributions we are able to offer our industry, and thus we produce periodic Multi-Family Market Summaries to further inform the clients and industry we serve. Capstone believes that this market snapshot will be beneficial to current owners, operators, investors, and other industry professionals who are active in the Tampa Bay MSA, as well as others who are looking to break into this market.
ContentsIntroduction 2
Market Commentary 3
Economic Overview 4
Sales Transactions 5
Proposed Development 8
Communities Under Construction 9
Why Choose Capstone? 10
Jad RichaInvestment Advisor
Enon WinklerPartner
Deucie BiesInvestment Advisor
Brian HunsickerInvestment Advisor
Orlando Office111 N. Orange Ave. Suite 1125 Orlando, FL 32801
Tampa Office208 N. Armenia Ave. Suite B Tampa, FL 33609
FLORIDA TEAM
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Quality of LifeThe Tampa Bay-St. Petersburg-Clearwater MSA is a rapidly expanding market with a thriving economy and numerous local amenities. Hillsborough and Pinellas Counties account for the majority of economic drivers within this MSA. Pinellas County also happens to be the most densely populated county in the entire State of Florida. Tampa Bay is home to three major sports teams, nearly 80 colleges, universities and technical schools and a world class transportation infrastructure.
Nineteen companies have corporate headquarters in the Tampa Bay area, bringing in over $1 billion annually. Eight of these are Fortune 1000 companies. In addition, Tampa is also home to almost 500 foreign-owned companies represented by over 40 countries. Tampa Bay is also the largest suburban office market in the state.
InfrastructureWhat Tampa may be best known for is its fantastic transportation system. The Tampa International Airport serves approximately 17 million people each year and ranks among the top airports in the country. The Port of Tampa encompasses 5,000 acres and provides
incomparable access to the Latin American market. Locally, Interstate 4, Interstate 75 and Interstate 275 provide residents with easy access to Orlando, Miami, Jacksonville and other major U.S. cities. The Veteran’s Expressway Toll Road connects Tampa to the northern bordering neighborhoods and suburbs while the Crosstown Expressway Toll Road leads east to Brandon which has numerous retail/service job drivers.
Educational OpportunitiesAs mentioned, Tampa is home to numerous higher education campuses including the University of South Florida, one of the largest universities in the nation with over 47,000 students. It is one of the top research institutions nationwide and offers over 220 degree programs. The University of Tampa made Forbes’ “America’s Best Colleges” list and attracts students from over 120 countries. Other schools in the area include Stetson University College of Law, Hillsborough Community College, Eckerd College and St. Petersburg College.
Area AttractionsThe area’s almost 3,000,000 residents enjoy pristine beaches on the Gulf of Mexico, theme parks and luxury
shopping. Busch Gardens is centrally located within Tampa, while the new Legoland Park and Walt Disney World attractions are just a short drive away. Tampa Bay-St. Petersburg-Clearwater MSA also boasts many retail centers including the Sundial of St. Petersburg and the International Plaza of Tampa. Cultural centers in the MSA include the Straz Performing Arts Center and the world renowned Salvador Dali Museum. With so much constant activity, it’s no wonder that the Tampa Bay Buccaneers, Tampa Bay Lightning and Tampa Bay Rays call Tampa home, as well.
Multi-Family FundamentalsThe current vacancy rate for the Tampa market has improved slightly over the past six months to 5.1%. Demand for apartments remains strong with 2,416 absorbed units for the region. With 4,123 units under construction and an additional 4,607 units proposed, it is evident that the development pipeline remains active in the Tampa market. In Tampa, developers are active throughout all submarkets. Capstone anticipates the occupancy rate will remain steady throughout the next 12-18 months. In addition, the region will see 2.0%-3.0% rent growth throughout 2015.
Apartment Comparison by ClassClass Units Vacancy Rate Avg. Sq. Ft. Avg. Rent Avg. Rent/Sq. Ft.
Lease-up 5,046 25.4% 966 $1,413 $1.46A (1-5 Years in Age) 9,330 4.3% 999 $1,276 $1.28B (6-15 Years in Age) 29,114 4.5% 1,085 $1,085 $1.00C (16-30 Years in Age) 49,820 4.6% 894 $915 $1.02C- (30+ Years in Age) 44,463 6.3% 849 $795 $0.94Stabilized Averages 132,727 5.1% 928 $938 $1.01Totals/Averages 137,773 5.9% 930 $955 $1.03
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WEmployment
The unemployment rate in the Tampa metro region is 6.2%. This market continues to experience positive job growth with the addition of over 40,000 jobs over the past year. The state and national rate is 6.1%.
Major Employers (non-government)Rank Company Industry Employment
1 BayCare Health System Healthcare 19,600
2 Publix Super Market Grocery 13,800
3 HCA West Florida Healthcare 13,150
4 Verizon Telecommunications 9,950
5 Tampa General Hospital Healthcare 6,600
6 Wal-Mart Grocery 5,800
7 Florida Hospital Healthcare 5,100
8 Lakeland Regional Medical Center Healthcare 5,000
9 Moffitt Cancer Center Healthcare 4,300
10 Citi Financial Services 4,000
Wages & PopulationThere are 1,281,418 employees in the Tampa-St. Petersburg-Clearwater MSA earning a mean hourly wage of $20.90 and an average annual income of $43,118. In comparison, the state and national annual income averages are $42,120 and $50,274, respectively. The overall cost of living index in Tampa Bay is approximately 7.5% less than both the state and national index means.
Historical Population2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Clearwater 108,706 108,275 107,066 106,172 105,802 106,081 108,230 108,335 108,820 109,703
St. Petersburg 247,859 247,936 246,616 245,142 244,753 244,324 245,403 246,095 247,394 249,688
Tampa 320,713 325,569 332,604 334,852 340,108 343,890 336,846 346,677 348,701 352,957
Tampa-St. Petersburg-Clearwater MSA 2,578,104 2,638,814 2,684,639 2,711,222 2,730,007 2,747,272 2,788,961 2,827,556 2,845,178 2,870,569
Florida 17,375,259 17,783,868 18,088,505 18,277,888 18,423,878 18,537,969 18,846,054 19,083,482 19,320,729 19,552,860
Source: U.S. Census Bureau
Employment / Economic Announcements
The Tampa International Airport has started an extensive three-year, $1 billion dollar renovation, which includes a 55,000 square foot expansion of the airport.
Quest Diagnostics has chosen to locate its national operations center in Tampa with plans to create 350 jobs.
Progressive Insurance, will be adding 200 new jobs to its Tampa workforce.
MyMatrixx, a medical benefits company, has announced plans to add 200 new jobs over the next three to five years at its offices in Tampa.
LabTech Software, has plans to add 100 new jobs as it expands in operations in Tampa.
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LES TRAN
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S2014 Sales Transactions
Community YOC City Sale Date Units Sale Price Price Per UnitCrescent Bayshore 2014 Tampa 10/29/2014 367 $111,500,000 $303,815
The Pointe at South Florida 2000 Tampa 10/20/2014 336 $31,000,000 $92,262
Verandahs at Brighton Bay 2002 St. Petersburg 9/29/2014 381 $50,292,000 $132,000
Brandon Crossing 1990 Brandon 9/16/2014 200 $14,500,000 $72,500
Citrus Falls 2003 Tampa 9/4/2014 273 $35,250,000 $129,121
Noho Flats at Hyde Park 2013 Tampa 9/1/2014 311 $57,250,000 $184,084
Flats at 4200 2013 Tampa 8/29/2014 314 $36,296,300 $115,593
Courtney Cove 1983 Tampa 8/22/2014 324 $18,950,000 $58,488
Oakhurst Square 1950 Tampa 8/18/2014 200 $7,000,000 $35,000
Summer Palms 2001 Riverview 8/7/2014 340 $31,700,000 $93,235
Madison Park Road 2000 Plant City 8/4/2014 248 $21,774,194 $87,799
Bay Pointe 1975 Clearwater 7/23/2014 417 $18,000,000 $43,165
Lincoln Shores 1984 St. Petersburg 7/15/2014 631 $47,170,000 $74,754
Reflections 1996 Riverview 7/14/2014 290 $11,500,000 $39,655
Bay Pointe Villa 1971 St. Petersburg 7/10/2014 136 $4,800,000 $35,294
Park East 1988 Tampa 7/3/2014 192 $12,400,000 $64,583
Island Walk 1986 Tampa 7/3/2014 400 $50,000,000 $125,000
Gallery at Bayport 1986 Tampa 7/3/2014 277 $28,432,000 $102,643
Captiva Club 1972 Tampa 6/23/2014 357 $24,750,000 $69,328
Twenty 35 Safety Harbor 1969 Safety Harbor 6/12/2014 200 $11,500,000 $57,500
Snell Isle Club 1969 St. Petersburg 6/6/2014 272 $32,000,000 $117,647
Cove 1977 Tampa 5/16/2014 689 $53,025,000 $76,959
West Park Village 2001 Tampa 5/14/2014 617 $122,500,000 $198,541
St Charles Row 1972 St. Petersburg 5/2/2014 368 $11,000,000 $29,891
Enclave at Wiregrass 2006 Wesley Chapel 5/1/2014 312 $36,100,000 $115,705
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S2014 Sales Transactions
Community YOC City Sale Date Units Sale Price Price Per Unit
Liv at Dunedin 1975 Dunedin 4/28/2014 180 $10,000,000 $55,556
Key Vista (Carlisle Lake) 1973 Tampa 4/14/2014 172 $3,500,000 $20,349
Apartments at Oak Creek 1984 Clearwater 4/8/2014 184 $13,400,000 $72,826
Park Pointe 1970 Tampa 4/1/2014 188 $8,925,000 $47,473
Hunters Ridge at Walden Lake 1990 Plant City 3/31/2014 352 $23,000,000 $65,341
Garden Isles 1971 Tampa 3/31/2014 324 $12,360,000 $38,148
Lansbrook Village 2004 Palm Harbor 3/15/2014 167
$58,500,000* $114,931*Lansbrook Village 1998 Palm Harbor 3/15/2014 158
Lansbrook Villas 1998 Palm Harbor 3/15/2014 184
Fernwood Grove 1975 Tampa 3/14/2014 128 $4,482,000 $35,016
Poplar Park Terrace 1970 Tampa 3/14/2014 164 $5,742,800 $35,017
St Moritz 1980 Tampa 3/9/2014 168 $11,000,000 $65,476
42 North 1998 Tampa 3/7/2014 120 $12,081,500 $100,679
On 50 1992 Tampa 3/7/2014 165 $13,320,000 $80,727
Preserve at Alafia 2011 Riverview 3/3/2014 351 $9,000,100 $25,641
Pierhouse at Channelside 2012 Tampa 2/11/2014 356 $76,500,000 $214,888
Viera at Westchase 1999 Tampa 1/31/2014 390 $39,750,000 $101,923
San Marin 1971 Tampa 1/28/2014 193 $9,000,000 $46,632
Preserve at Mobbly Bay 2000 Tampa 1/21/2014 316 $33,750,000 $106,804
Beacon Isles 1984 Tampa 1/16/2014 484 $29,873,714 $61,723
Tuscany Bay 2001 Tampa 1/14/2014 370 $44,554,000 $120,416
Imt Westchase 1999 Tampa 1/14/2014 300 $33,727,000 $112,423
Promenade at Carillon 1994 St. Petersburg 1/10/2014 334 $45,800,000 $137,126
*3 Property Portfolio Sale
SALES TRA
NSA
CTIO
NS
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307
259 258
274
230
240
250
260
270
280
290
300
310
320
Class A Class B Class C AVERAGE
Average # of Units Per Transaction
2005
1993
1974
1989
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Class A Class B Class C AVERAGE
Average Year of Construction
$45,014,811
$25,864,591
$14,383,814
$27,671,000
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
Class A Class B Class C AVERAGE
Average Transaction Sales Price
$148,899
$91,146
$49,096
$94,276
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
Class A Class B Class C AVERAGE
Average Price Per Unit
Class A represents renovated properties and properties built from 2000-2014, Class B includes properties constructed from 1985-1999, and Class C signifies properties constructed in 1984 or earlier. Averages are based on sales of 100+ units during the years of 2013 and 2014.
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TCommunities Proposed (100 Units and Above)
Developer Community Units Road/Intersection Submarket
Dockside Investors LLC Boulevard 260 NW of Ulmerton Rd/Seminole Blvd. Peninsula Central
Pizzuti Builders Dunedin Gateway 124 Corner of Main St./Milwaukee Ave. Peninsula North
Dockside Investors LLC Broadway 258 NW corner of 66th St./126th Ave. Peninsula South
The Allen Morris Company Hermitage 348 700 1st St. Peninsula South
Northwood Ravin 4310 Spruce 262 4310 Spruce St. Tampa Central
Richman Group Grady Square 300 3860 Columbus Dr. Tampa Central
Taylor and Mathis Metwest 254 Corner of Boy Scout Blvd/Lois Ave. Tampa Central
Soho Capital Riverside Heights 317 North of Palm Ave. Tampa Central
Contravest Addison at Tampa Oaks 262 SW corner of Fletcher Rd./I-75 Tampa Northeast-1
Florida Crystals Amazon Hose and Rubber 270 SW corner of Kennedy Blvd./12th St. Tampa South
Richman Group Aurora 351 124 Morgan St. Tampa South
Carter and Associates Grant Block 375 901 Franklin St. Tampa South
Framework Group LLC Residences at the Riverwalk 380 Next to the Straz Center Tampa South
Framework Group LLC Harbor Island 235 NW corner of Knights Run Ave./South Beneficial Dr. Tampa South
Tampa Housing Authority Tempo 203 Temple Palms Ave. Tampa South
Framework Group LLC Ybor City 234 1512 East 12th Ave. Tampa SouthGrady Square Residences at the RiverwalkHermitage
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NCommunities Under Construction (100 Units and Above)
Developer Community Units Road/Intersection Submarket
Alliance Residential Broadstone Clearwater 240 2168 Druid Rd. Peninsula Central
Pollack Shores Real Estate Gateway North 302 2681 Roosevelt Blvd. Peninsula Central
Pollack Shores Real Estate Solaris at Clearwater 426 28555 Gulf to Bay Peninsula Central
NRP Group Beacon 430 310 430 South Third Ave. Peninsula South
Richman Group Epic at Gateway Center 152 3115 Grand Ave. Peninsula South
American Land Ventures University Village 358 330 Third St. Peninsula South
Northwood Ravin Varela Westshore 322 1701 Lois Ave. Tampa Central
AG Spanos Bonterra Parc at Northwood 262 SE corner of State Rd. 56/Northwood Palms Rd. Tampa Northeast-2
Arlington Properties Tapestry at Citrus Park 372 12780 Olive Jones Rd. Tampa Northwest
Alliance Residential Broadstone Hyde Park 264 Corner of Cleveland St & Rome Ave. Tampa South
Novare Group Skyhouse Channelside 320 Corner of 11th St/Whitting St. Tampa South
Newland Communities Circa at Fishhawk Ranch 260 13901 Fishhawk Blvd. Tampa Southeast
Picerne Development Oasis at Brandon 310 9503 Oasis Way Blvd. Tampa Southeast
WRH Realty Valrico Station 160 104 Valrico Station Rd. Tampa Southeast
Altman Properties Altis at Highland Park 239 11571 Fountainhead Dr. Tampa WestBroadstone Clearwater Varela Westshore Beacon 430
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E?Carolinas Georgia Virginia Tennessee Kentucky Alabama Florida West Virginia
The People Sell the Deal
Capstone’s Southeast & Mid-Atlantic Investment Sales Team is among the market leaders within our industry sector and respective region. We place client service above all else, and can guarantee that no one else will work smarter and harder in achieving the highest level of results for our clients. We don’t rely on a logo to sell the deal, but rather
utilize the industry expertise and investment acumen, tremendous drive and work ethic, and unbeatable salesmanship of the team members assigned to each project. At the end of the day, it’s the individuals that drive value and sell the deal, and we know the capabilities of our individual team members are second to none.
Market Expertise & Product Niche
Capstone sits atop the private capital sector of multi-family investment sales for multiple reasons. Our deliberate and concentrated focus and expertise in not just the primary markets of the Southeast & Mid-Atlantic, but also the secondary and tertiary markets within our region, identifies us as the ideal candidate for such assignments. Capstone’s investment sales team has completed a multitude of transactions across the primary, secondary, and tertiary markets of the Southeast & Mid-Atlantic, and our track record of success can be attributed to our comprehensive coverage and expertise among these markets, as well as our relationships with the owners and investors who remain active in this environment.
National Exposure via Cutting Edge Technology
Capstone has developed and maintains industry leading national databases, expansive information delivery methodologies, and various proprietary activity tracking systems. These tools are utilized daily by the investment sales team, analysts, and back-office support staff allowing for optimal operational efficiency. This enables Capstone’s investment brokerage team to spend nearly all of its time servicing clients, interacting with industry players and active asset traders, and promoting transactions.
Reputation and Results
Capstone prides itself on its impeccable industry reputation and the core values and behaviors of the firm that drive daily operations. The firm possesses an unblemished reputation and track record industry-wide, and, as such, the firm’s trusted relationships among the apartment investment community continue to facilitate seamless, fluid, and successful sales transactions.** Information in this report has been provided by the following resources: Real Data Tampa Report December 2014, Tampa Bay Business Journal, Costar, Tampa Bay Times, Tampa Economic
Development Corporation, Tampa Bay Partnership, U.S Census Bureau, Bureau of Labor Statistics, county tax records, and various multi-family industry contacts. Source Images provided by Jared (cover), Matthew Paulson (pg. 2 top, left) via https://creativecommons.org/licenses/by/2.0/.
