214 Condominium Units Completed in 2009 Core-Quality

Tampa, Florida
OFFERING SUMMARY
214 Condominium Units Completed in 2009
Core-Quality Asset Offering Excellent Upside Potential
in Vibrant Downtown Tampa
Holliday Fenoglio Fowler, L.P. (“HFF”) a Florida licensed real estate broker.
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HFF is pleased to present an outstanding opportunity to acquire 214 upscale condominium units within The Slade (the
“Property” or the “Offering”), an 8-story landmark building in downtown Tampa. Completed in 2009, The Slade is among the
most luxurious multi-housing assets in the market and is ideally located in the exciting, rapidly growing Channelside district. The
Property offers tremendous upside potential through streamlined operations and enhancing unit interiors, as well as the ability to
sell individual condos as the for-sale market enters a period of rapid price appreciation.
E XE CU T I VE SU M M A RY
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3
View to West
Investment Highlights
Class A, Core Asset: The 8-story mid-rise was constructed to
condo-quality specifications. With all concrete construction, open
modern floor plans, and attached structured parking, The Slade is
superior in quality to typical new construction apartment inventory.
Attractive Investment Basis:
The Slade offers the
uncommon opportunity to acquire a like-new, core-quality property
at a basis that represents a discount to replacement cost. The
Property will also sell below current retail condo pricing and well
below recent sales of comparable rental communities.
Significant Value-add Potential: Investors have the
opportunity to substantially increase NOI and add value through
interior upgrades (specifically flooring), common area improvements,
and improving operational efficiencies.
Vibrant, High Growth Urban Location: The Slade is
located in Tampa’s most vibrant urban neighborhood in the path
of tremendous growth with a $1 billion mixed-use development
recently announced just blocks away. Channelside offers convenient
access to the central business district with multiple transportation
options as well a variety of retail, entertainment, and dining options.
Flexible Business Plan Possibilities: An owner may
continue to operate the 214 units as rental product to take
advantage of the increasing demand for rental units in downtown
Tampa, or choose to sell units individually to condo buyers as the
for-sale market improves.
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Core-Quality, Class A Asset with an Abundance of Amenities
Completed in 2009 at a cost of $260,000 per unit, The Slade was built to condo-quality
specifications with all concrete construction and an attached 6-story parking garage. The
Property features two independent 8-story residential towers, each with an oasis-like
courtyard, swimming pools, and an abundance of amenities. The upscale interiors boast
modern, open designs that are available in 1, 2, or 3-bedroom floor plans averaging 935
square feet.
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Apartment Features
•
GE Profile stainless steel appliances
•
Granite countertops
•
Designer cabinetry
•
9’, 12’, and 20’ ceilings (depending on floor)
•
Floor-to-ceiling sliding glass doors
•
Private balconies
•
Hurricane impact windows and doors
•
Rectangular under-mount sinks in bathrooms
•
European-style bath fixtures
•
Marble vanity tops
•
Upgraded carpeting and hardwood floors
(in select apartment units)
Community Amenities
•
Infinity swimming pool with spa
•
Salt water swimming pool
•
Two-story fitness center with yoga room
•
Rooftop sun deck
•
24-hour concierge service
•
Club room with Wi-Fi
•
Cyber café
•
Gated parking with direct access into the building
•
Landscaped courtyards
•
Limited access building
•
Two elegantly appointed lobbies
E XE CU T I VE SU M M A RY
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PROPERTY OVERVIEW
Location:
1190 East Washington Street, Tampa, Florida 33602, Hillsborough County
Residential Units (Owned / Total):
214 / 294
Average Unit Size (Under A/C):
935 SF
Total Rentable Residential Square Feet:
200,126 SF
Percent Occupied (As of April 8, 2015):
93.9%
Year Built:
2009
Achieved Rent / Per SF:
$1,1667 / $1.80
Retail Square Feet (Owned / Total):
11,613 SF / 13,193 SF
Construction Type:
8-story concrete block with a 6-story structured parking garage
E XE CU T I VE SU M M A RY
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UNIT MIX SUMMARY
Unit Type
Average SF
Unit Count
% of Mix
S1 - Studio
675
1
0.5%
S2 - Studio
723
14
6.5%
A1 - 1 Bed / 1 Bath
749
77
36.0%
A2 - 1 Bed / 1 Bath
858
17
7.9%
A3 - 1 Bed / 1 Bath
703
7
3.3%
B1- 2 Bed / 2 Bath
1,048
33
15.4%
B2 - 2 Bed / 2 Bath
1,231
12
5.6%
B3 - 2 Bed / 2 Bath
1,136
23
10.7%
B4 - 2 Bed / 2 Bath
1,101
17
7.95
C1 - 3 Bed / 2 Bath
1,383
13
6.1%
TOTAL/AVERAGE
935
214
100%
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8
Port Tampa Bay Cruise Terminal
Channelside Bay Plaza
YBOR CITY
HCC YBOR CAMPUS
PALM AVE
9TH AVE
YBOR CITY
MUSEUM
137TH ST
275
12TH ST
11TH ST
RESSW
AY
EXP
ON
EL
CUMBERLAND
AVE
S
CHANNELSIDE DR
FLORIDA AQUARIUM
AMERICAN VICTORY MUSEUM SHIP
CRUISE TERMINAL
PUBLIX
DE LEON ST
PLANT AVE
HYDE PARK AVE
EDISON AVE
AZEELE ST
MAGNOLIA AVE
PLATT ST
ST
ATER
OLD W
AMALIE
ARENA
TAMPA
CONVENTION
CENTER
STREETCAR SYSTEM
SWANN AVE
HYDE PARK VILLAGE
DAVIS
ISLANDS
CHANNELSIDE
BAY PLAZA
TAMPA BAY
HISTORY CENTER
HARBOUR
R
ISLAND
20TH ST
19TH ST
18TH ST
17TH ST
157TH ST
ST
M
RK
CRUISE TERMINAL
CHANNELSIDE
TAMPA RIVERWALK
CLEVELAND ST
PORT AUTHORITY HEADQUATERS
YO
T
RS
USF CAMLS
ST
REIN
BRO
MERIDIAN AVE
DOWNTOWN
TAMPA
T
NS
RIO
MA
VE
AA
RID
FLO
T
IN S
NKL
T
FRA
PA S
TAM
ST
LEY
ASH
E
RK
PA
KENNEDY BLVD
CHANNELSIDE DR
W
PK
IO
CC
NU
ST. LEO UNIVERSITY
T
K ST
GS S
POL
WIG
T
TAMPA THEATER
ST
D
ON
BLV
DIS
EDY
MA
TAMPA MUSEUM OF ART
N
N
KE
ST
SON
GLAZER CHILDREN’S MUSEUM
ST
ACK
J
TON
CURTIS
ING
H
S
UNIVERSITY OF TAMPA HIXON PARK
WA
G ST
ITIN
H
W
HENRY B. PLANT
JOHN F. GERMANY
PUBLIC LIBRARY
NORTH BLVD
K ST
ZAC
ST
UNION STATION
TWIGGS ST
OR
ELEMENT
2ND AVE
RB
T
S ST
CAS
NS
TYL
CASS ST
ST
SON
FER
JEF
T
CE S
PIER
RGA
MO
DAVID A STRAZ, JR CENTER
FOR PERFORMING ARTS
4TH AVE
3RD AVE
HA
FORTUNE ST
T
ER S
5TH AVE
Y
MARION TRANSIT CENTER
MUSEUM
AVE REP DE CUBA
CENTRO YBOR
7TH AVE SHOPPING & DINNING
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to live in a walkable, urban neighborhood close to work. At Grand
Attractive Basis below Replacement Cost, Condo
Values, and Recent Apartment Sales
Central at Kennedy, located just a block to the north of Slade, sale
prices have averaged $248 per square foot over the past 6 months
The Slade is expected to sell at an attractive basis that represents a
versus $221 in the prior 6 months, representing 12.2% growth within
discount to replacement cost, condominium retail values, and sales
that short timeframe. Demand for condominiums in Channelside is
of comparable rental communities.
expected to continue to soar following the recent announcement of
plans for a $1 billion mixed-use project in Channelside funded by Bill
Gates’ Cascade Investments.
Replacement Cost: When constructed in 2009, The Slade cost
approximately $260,000 per unit to build. Today, replacement cost
for an 8-story, condo-quality property with structured parking is
Overall, the single family for-sale market has snapped back 56%
estimated to be approximately $220,000 to $250,000 per unit based
since the downturn. In some neighborhoods in Tampa, homes are
on input from a variety of active developers. Costs to build have been
now selling at or above prior peak prices. By comparison, the condo
escalating quickly as hard costs have been increasing at a pace of 1%
market has lagged the single-family market, rebounding just 36%.
per month over the past 12 months and good land sites are becoming
Factors inhibiting the condo market rebound, such as limited financing
scarce. The most recent land sale was a 3.72-acre site within a
and defunct condo associations, have improved significantly, which
few blocks of The Slade which sold in July 2014 for $12,139,100
bodes well for rapid price appreciation ahead. Furthermore, the
or $34,584/unit.
condo market will benefit greatly from apartment renters converting
On this site, The Richman Group plans to build a
to homebuyers as the heated rental market has pushed rental rates
5-story wood frame wrap construction property with 351 units.
above a comparable house payment.
Condo Pricing: The retail condo market has begun to rebound in
the Channelside neighborhood owing to a significant lack of available
Apartment Values: Despite being similar or superior in quality, The
product, no new development since before the recession, and the
Slade will sell well below similar Class A apartment communities in
growing interest among the millennial generation and empty-nesters
the Tampa market.
RECENT COMPARABLE SALES
Property
Units
Avg SF
Year Built
Sale Date
Varela
350
946
2015
Under Contract
Crescent Bayshore
367
911
2014
NoHo Flats
311
838
Pierhouse
356
Element
395
Price
Price / Unit
Price / SF
$79,450,000
$227,000
$240
Oct 2014
$111,500,000
$303,815
$333
2014
Sep 2014
$57,250,000
$184,084
$220
906
2013
Feb 2014
$76,500,000
$214,888
$237
925
2009
Oct 2013
$98,000,000
$248,101
$268
10
Grand Central
at Kennedy
Tremendous Value-add Opportunity
Common Area Upgrades:
The common areas of the property
are controlled by the Condominium Association, but by possessing
The Slade offers investors significant operational upside and the
two-thirds of the voting rights, an owner has the potential to control
potential to add value through capital improvements.
capital investments into the common areas. In fact, some of the
improvements may be paid for out of the Association’s reserve which
While apartment interiors feature some of
has already earmarked dollars to repaint the buildings among other
the best finishes in the market, investors still have the opportunity
projects. Additional upgrades, such as enhancing the fitness center
to make improvements that will command rental premiums. For
or the roof-top sunning deck, make good business sense to enhance
example, currently 36 of the 214 units feature hard surface flooring
the Property’s competitive advantage.
Interior Upgrades:
throughout the living room which commands a premium of $100 per
month for studio and 1-bedroom units and $150 per month for 2 and
Operational Improvements: A proactive owner may also be able to
3-bedroom units. Adding hard-surface flooring to the balance of the
make operational improvements that will positively impact the bottom
units will potentially generate $261,000 in annual rental revenue.
line. Potential improvements include eliminating some redundancy
in payroll and eliminating or reducing the reserves charged by the
Condominium Owner’s Association.
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Channelside – Tampa’s Fastest Growing, Most
Vibrant Urban Neighborhood
The first part of the plan to take shape will be the relocation of the
University of South Florida’s Medical School and Heart Institute to a
parcel of land that Vinik has donated to the university. From there,
Channelside is downtown Tampa’s most vibrant urban neighborhood
the goal is to attract a major corporate user for the development of
characterized by a mix of luxury high-rise condos and eclectic
an office building upwards of 500,000 square feet. Plans for nearly
warehouse loft conversions. The neighborhood has experienced a
250,000 square feet of retail, 1.1 million square feet of office, and
surge in growth, growing from just 11 residents in 2000 to over
a luxury hotel comprise what will be the ultimate game changer for
3,500 in 2014. Though existing residential inventory is nearly
the entire Tampa Bay region.
fully occupied, growth is expected to continue at a rapid pace as
the neighborhood continues to attract development and will soon
Downtown Tampa: Tampa’s Central Business District spans 9.7
welcome a $1 billion mixed-used development coined Waterfront
million square feet of office space, including 5.3 million square
Tampa.
feet of Class A space. Vacancy within the downtown office market
now stands at 10.7% with rents of $23.44, making the Tampa CBD
Channelside Attractions: Channelside sits just east of the central
one of the area’s top performing submarkets. Downtown Tampa’s
business district and is home to a number of attractions such as
predominantly white collar workforce now totals more than 58,000
Amalie Arena, the Florida Aquarium, the Tampa History Museum,
employees.
and Channelside Bay Plaza, an outdoor retail center in the midst of
redevelopment.
Long thought of as simply a 9 to 5 locale for business workers,
downtown is quickly becoming a popular destination for arts, culture,
Residents of Channelside have access to the TECO Streetcar trolley
and entertainment. Downtown encompasses 134 restaurants, 10
system that stops just two blocks from the Slade.
The Streetcar
museums and art galleries, and 12 outdoor parks. The area’s highly
offers riders a quick commute into the central business district or to
affluent residential population has swelled to nearly 6,800 people
Ybor City, home to some of Tampa’s best restaurants and nightlife.
with 65% of households having an income in excess of $100,000.
Tampa’s new Riverwalk, a popular destination for jogging, biking,
Channelside Rental Market: The majority of residential units within
and taking in views of Tampa’s waterfront, terminates just a short
the Channelside district are for-sale condominiums with only two
walk from The Slade in Channelside. Commuters use the Riverwalk
pure rental properties totaling 778 units serving the area. As such,
to bike to work in the CBD, while fun-seekers enjoy stopping by
apartments are in high demand with occupancies in the 95% range.
the several bars and restaurants situated along the trail. Fitness
Properties within the submarket command among the highest rental
enthusiasts also can connect to the Bayshore Boulevard Linear Park
rates in the metro area.
which is known to be the longest uninterrupted sidewalk in the
country.
Two properties are currently under construction which will serve to
add critical mass to the district and help make Channelside a more
Waterfront Tampa: Former hedge fund manager and current Tampa
vibrant, walkable neighborhood by attracting further retailers and
Bay Lightning owner Jeff Vinik has proposed a $1 billion development
ultimately a grocery a store. Skyhouse, a 320-unit, 23-story high-
plan that will transform Tampa’s urban core into a vibrant live, work,
rise, will open to residents this summer and is presently pre-leasing
play, and stay destination along Tampa’s waterfront. Vinik, backed
at rents of $2.10 per square foot. Florida Crystals recently broke
by Bill Gates’ Cascade Investments, has put forth a vision that will
ground on a to-be-named 270-unit property that will rise 8 stories
add nearly 3 million square feet of commercial space to 24 acres of
and open in late 2016 with rents projected to be well above $2.00/sf.
vacant land that links Channelside to the CBD.
WESTSHORE PLAZA
Gateway Office Market
Ga
Downtown St. Petersburg
ndy B
ridge
How
8.7mm sf of office space
ard F
rank
60,000 employees
Tampa International Airport
land
Bridg
4.3mm sf of office space
30,000 employees
Crescent Bayshore
Skypoint
Avg. Rent: $2,014/$2.21 psf
U.S. Central Command
e
Westshore
estsh
sts
tshor
shho Office
Offi e Market
Marke
ket
17.2mm sf of office space - 93,000 employees
HYDE PARK VILLAGE
MacDill Air For
FForce
oorrce Base
7,500 employees • $1 billion expansion
INTERNATIONAL PLAZA
AND BAY STREET
Average Sale Price:
14,500 military and civilian personnel
$264,100 ($310 per sf)
Tampa General Hospital
275
1,011 beds; 7,300 employees
University of Tampa
Publix
Amalie Arena
650 employees
Home of the
Post Harbour Place
Straz Center
Tampa Riverwalk
Tampa Bay Lightning
Avg. Rent: $1,715/$1.66 psf
7,750 students
Tampa
Convention Center
Tampa Musem of Art
Glazer Children’s Museum
Opened March 2015 - 2.4 miles
Element
Ferg’s Live
Curtis Hixon
Waterfront Park
USF CAMLS
Tampa Bay
History Center
$1B Mixed-Use Development
Hillsborough County
Clerk of Courts
1.1 mm sf office space
CHANNELSIDE BAY PLAZA
250,000 sf retail space
Leer
USF Medical School and Heart Institute
6,700 new jobs at build-out
Pierhouse
$358,100 ($307 per sf)
Avg. Rent: $1,724/
lmon
Tampa
Federal
Courthouse
ENCORE!
Expr
essw
$425M public-private
ay
mixed-use development
Skyhouse
GRAND CENTRAL AT KENNEDY
Avg. Rent: $1,669 / $2.10 psf
Avg. Sale Price: $290,380 ($248 per sf)
Washington
W
hii
h
Street Park
Towers of Channelside
Average Sale Price:
oy Se
Avg. Rent: $1,997/$2.16 psf
$1.90 psf
Florida Aquarium
Cha
Port Tampa Bay
nne
lsid
Florida’s largest cargo port
eD
Victory
Coffee
rive
100,000 direct and indirect jobs
Residential Site
Under Construction
Bamboozle
Tea Lounge
900,000 cruise passengers
Proposed Grocery Store
and High-Rise Residential
Investment Contacts
Debt Inquiries
Matt Mitchell
Zach Nolan
Brett Moss
Elliott Throne
Director
813.387.9902
mmitchell@hfflp.com
Analyst
813.387.9906
znolan@hfflp.com
Analyst
407.745.3921
bmoss@hfflp.com
Managing Director – Debt Financing
305.421.6549
ethrone@hfflp.com
Jaret Turkell
Maurice Habif
Preston Reid
Michael Tabor
Managing Director
305.448.1333
jturkell@hfflp.com
Associate Director
305.448.1610
mhabif@hfflp.com
Analyst
813.387.9905
preid@hfflp.com
Director – Debt Financing
813.387.9907
mtabor@hfflp.com
HFF FLORIDA OFFICES
Tampa
Miami
Orlando
101 East Kennedy Boulevard
Suite 3905
Tampa, FL 33602
Telephone: 813.387.9900
Fax: 813.387.9940
1450 Brickell Avenue
Suite 2950
Miami, Florida 33131
Telephone: 305.448.1333
Fax: 305.448.9499
300 South Orange Avenue
Suite 1250
Orlando, FL 32801
Telephone: 407.745.3900
Fax: 407.745.3935
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No warranties or representations, expressed or implied, are made as to the accuracy of the information contained herein. The Property is offered subject to errors, omissions, change of price, rental or other
conditions including withdrawal without notice, and will be subject to any special conditions, which may be imposed or made by the owner or Holliday Fenoglio Fowler, L.P. The owner and Holliday Fenoglio
Fowler, L.P. reserve the right to accept or reject or withdraw any and all offers.
Copyright 2015 HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate
and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment
sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff.