ST. p -C , Fl mSa - Capstone Apartment

Tampa-St. P etersburg -Clearwater, FL MSA
Multi-Family Market Summary & Activity Update
Summer 2015
TAMPA
Contents
Introduction
Introduction2
Market Commentary
3
Economic Overview
4
Sales Transactions
5
Proposed Development
8
Communities Under Construction
9
Why Choose Capstone?
10
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.
FLORIDA TEAM
Tampa Office
Orlando Office
208 N. Armenia Ave.  Suite B  Tampa, FL 33609
111 N. Orange Ave.  Suite 1125  Orlando, FL 32801
Jad Richa
Brian Hunsicker
Enon Winkler
Deucie Bies
Investment Advisor
727.282.5547
[email protected]
Investment Advisor
727.631.5870
[email protected]
Partner
407.616.0250
[email protected]
Investment Advisor
407.470.9030
[email protected]
2
TAMPA
Growth in the Tampa Bay Market
The Tampa Bay MSA continues to thrive. Over the past year, 32,900
jobs have been added to the area causing an increase in demand for
multi-family units. With new developments coming to the area, it is
expected that the Tampa Bay market will continue to add hundreds
of jobs to the area and improve economically.
Currently in redevelopment is Channelside Drive, which is located
in the heart of downtown Tampa. The $1 billion redevelopment
project is being ranked as one of the largest downtown development
projects in the Southeast. Additonal infrastructure includes a 30 Multi-Family Fundamentals
acre entertainment and commerce district, hotels, business offices,
apartment towers, restaurants, parks, and entertainment venues.
The current vacancy rate for the Tampa market has improved slightly
over the past six months to 4.2%. Demand for apartments remains
Additionally, the University of South Florida medical school and heart strong with 3,223 units absorbed over the past six months and a
institute are moving to an acre of land located at Channelside Drive total of 5,639 absorbed over the past year. With 5,000 units under
and Meridian Avenue, which will be joined by an adjacent private construction and an additional 6,700 units proposed. Market experts
medical tower and a parking structure for 1,800 cars. This addition anticipate the occupancy rate will remain steady throughout the next
will provide an added draw to a downtown that is reshaping itself to 12-18 months, with the region also experiencing a 2.0% - 3.0% rent
appeal to a young and talented workforce.
growth over the coming 12 months.
Class
Units
Lease Up
A (1-5 Years in Age)
B (6-15 Years in Age)
C (16-30 Years in Age)
C- (30+ Years in Age)
Stabilized Averages
Totals/Averages
5,800
6,957
27,335
48,632
50,896
133,820
139,620
Apartment Comparison by Class
Vacancy Rate
Avg. Sq. Ft.
22.0%
3.1%
3.6%
4.3%
4.5%
4.2%
4.9%
988
981
1,083
918
547
928
930
Avg. Rent
Avg. Rent/Sq. Ft.
$1,461
$1,275
$1,141
$983
$831
$973
$993
$1.48
$1.30
$1.05
$1.07
$0.98
$1.05
$1.07
MARKET COMMENTARY
Another mark of growth in Tampa Bay involves companies relocating
their corporate headquarters to the area to take advantage of Florida’s
growing population and sophisticated technology base—a recent
addition includes Twinlab Consolidation Corporation out of New
York. The maker of Metabolife diet and energy products is leasing
more than 30,000 sqft in St. Petersburg’s First Central Tower and will
bring 80 employees to the new site. In downtown Tampa, Cincinnatibased Total Quality Logistics is launching its carrier services division
that will create 75 new jobs. This in addition to the 150 employees at
their facilities on Harbour Island adjacent to downtown.
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TAMPA
Employment
Employment / Economic Announcements
ECONOMIC OVERVIEW
CitiGroup plans to expand its offices in Brandon
and add 1,163 high-paying jobs.
As of June 2015, the unemployment rate in the Tampa metro region is 5.3%. The
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 5.6% and 5.4%, respectively.
Cognizant Technology Solutions, a national
information technology firm, will add 412 highpaying jobs as it expands its operations in the
Tampa region.
Rank
Total Quality Logistics, a national logistics firm, is
planning to relocate its headquarters to Tampa
and will add 200 new jobs.
Xcelience, a pharmaceutical company, is adding
100 new jobs to its facility in Tampa.
Inspirata, a cancer research software company,
has plans to add 70 new jobs to its Tampa office
by 2017.
Major Employers (non-government)
Company
Industry
Employment
1
BayCare Health System
Healthcare
22,900
2
Publix Super Market
Grocery
13,000
3
Home Shopping Network
Information
10,550
4
University of South Florida
Education
9,000
5
WellCare
Insurance
6,700
6
Tampa General Hospital
Healthcare
6,400
7
Verizon
Information
6,000
8
JP Morgan Chase
Financial Services
5,100
9
Moffitt Cancer Center
Healthcare
4,200
10
Busch Gardens
Entertainment
4,000
Wages & Population
There are 1,182,200 employees in the Tampa-St. Petersburg-Clearwater MSA earning a mean hourly wage of $20.88 and an average annual
income of $43,420. In comparison, the state and national annual income averages are $47,230 and $41,820, respectively. The overall cost of
living index in Tampa Bay is approximately 7.5% less than both the state and national index means.
Historical Population
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
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 2,915,582
Florida
17,375,259 17,783,868 18,088,505 18,277,888 18,423,878 18,537,969 18,852,220 19,083,482 19,320,729 19,552,860 19,893,297
Source: U.S. Census Bureau
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TAMPA
Community
2001
2008
2010
1986
2006
1986
1995
2000
1983
1984
1999
1986
1973
2000
1984
1985
1969
1959
2013
1986
1986
1995
1987
1985
1972
1990
1985
1985
2009
1973
1999
1969
1981
1965
1996
1970
Tampa
Tampa
St. Petersburg
Clearwater
Tampa
Brandon
Tampa
Tampa
Tampa
Palm Harbor
Tampa
Palm Harbor
Clearwater
Tampa
Brandon
Clearwater
Tampa
St. Petersburg
St. Petersburg
Largo
Largo
Tampa
Clearwater
Tampa
Clearwater
Clearwater
Tampa
Tampa
Tampa
St. Petersburg
Riverview
South Pasadena
Tampa
Tampa
Tampa
South Pasadena
6/1/2015
5/12/2015
5/7/2015
5/2/2015
4/30/2015
4/23/2015
4/2/2015
4/1/2015
3/30/2015
3/26/2015
3/24/2015
3/23/2015
3/20/2015
3/19/2015
3/18/2015
3/16/2015
3/15/2015
3/15/2015
3/5/2015
3/3/2015
3/3/2015
2/27/2015
2/23/2015
2/10/2015
2/10/2015
2/6/2015
2/3/2015
1/30/2015
1/27/2015
1/15/2015
1/14/2015
12/27/2014
12/24/2014
12/23/2014
12/22/2014
12/17/2014
Units
Sale Price
Price Per Unit
400
297
325
276
230
444
240
238
267
168
390
264
200
580
88
218
168
304
308
104
96
432
207
204
182
228
392
832
300
276
228
59
209
134
536
50
$64,500,000
$38,400,000
$57,500,000
$34,150,000
$22,200,000
$43,600,000
$21,690,000
$13,200,000
$19,491,000
$21,815,142
$52,750,000
$21,815,200
$13,850,000
$17,200,000
$7,437,000
$18,925,000
$8,800,000
$20,200,000
$54,000,000
$7,600,000
$9,000,000
$51,500,000
$19,350,000
$12,250,000
$11,375,000
$29,850,000
$26,194,200
$85,125,000
$41,243,000
$23,250,000
$21,150,000
$5,600,000
$8,150,000
$3,550,000
$21,800,000
$6,000,000
$161,250
$129,293
$176,923
$123,732
$96,522
$98,198
$90,375
$55,462
$73,000
$129,852
$135,256
$82,633
$69,250
$29,655
$84,511
$86,812
$52,381
$66,447
$175,324
$73,077
$93,750
$119,213
$93,478
$60,049
$62,500
$130,921
$66,822
$102,314
$137,477
$84,239
$92,763
$94,915
$38,995
$26,493
$40,672
$120,000
SALES TRANSACTIONS
Lexington Park At Westchase
The Gardens at Cross Creek
Fusion 1560
Ashford at Feathersound
Arbor Walk
Park at Portofino
Vinings at Hunter's Green
Mobley Park
The Park on Waters
Stillwater Palms I
Viera at Westchase
Stillwater Palms II
Royal Breeze
Boardwalk at Morris Bridge
Sun Lake
Park at Elland
Lenox Place
Park at Treviso
Azure
Forest Creek
Bryan Dairy Place
Sabal Palm at Carrollwood
Park at Gibraltar
Carrollwood Palms
Landmark at Savoy Square
City Park Clearwater
Carlyle At Waters
Bowery Bayside
Carlyle at Crosstown
Sienna Bay
Park at Knightsbridge
Three Fountains
Villas at Country Square & Candelwood I
Tampa Gardens
University Club
Liv at Boca Ciega
2014-2015 Sales Transactions
YOC
City
Sale Date
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TAMPA
2014-2015 Sales Transactions
SALES TRANSACTIONS
Community
Tuscany Villas
Casablanca
Camden Lakeside
Moncler Willow Lake
Serenity Towers
Woodberry Woods
Flamingo West
Crescent Bayshore
Park at Coventry
Avesta Lago Bello
Del Rio
Moncler Buena Vista
The Pointe at South Florida
Laurel Oaks
Avesta Bella Mar
The Village at Brandon
Verandahs at Brighton Bay
Bay Cove
Rivertree Landing
Sandanay & Stonehenge
Brandon Crossing
Citrus Falls
Lakewood
Noho Flats at Hyde Park
Flats at 4200
The Edge at 42nd Street
Courtney Cove
Summit at Sabal Park
Oakhurst Square
Grove at Southshore
Madison Park Road
Bay Pointe
Lincoln Shores
Serenity Apartments at Royal Court
Reflections
Bay Pointe Villa
Park East
College Court
YOC
City
Sale Date
Units
Sale Price
Price Per Unit
1997
1970
1985
1986
1971
1988
1974
2014
1980
1984
1983
1984
2000
1982
1973
1986
2002
1972
1969
1971
1990
2003
1984
2013
2013
1967
1983
1990
1950
2001
2000
1975
1984
1974
1996
1971
1988
2004
Brandon
Tampa
Brandon
Lutz
South Pasadena
Brandon
Tampa
Tampa
Tampa
Tampa
Tampa
Tampa
Tampa
Tampa
Tampa
Brandon
St. Petersburg
Clearwater
Tampa
Tampa
Brandon
Tampa
Brandon
Tampa
Tampa
Tampa
Tampa
Tampa
Tampa
Riverview
Plant City
Clearwater
St. Petersburg
Tampa
Riverview
St. Petersburg
Tampa
Tampa
12/15/2014
12/12/2014
12/9/2014
11/20/2014
11/18/2014
11/14/2014
10/31/2014
10/29/2014
10/27/2014
10/16/2014
10/16/2014
10/14/2014
10/8/2014
10/8/2014
10/5/2014
9/30/2014
9/29/2014
9/26/2014
9/23/2014
9/18/2014
9/16/2014
9/4/2014
9/3/2014
9/1/2014
8/29/2014
8/26/2014
8/22/2014
8/20/2014
8/18/2014
8/7/2014
8/4/2014
7/23/2014
7/15/2014
7/15/2014
7/14/2014
7/10/2014
7/3/2014
7/1/2014
248
241
228
144
210
348
72
367
320
120
160
240
336
192
264
112
381
336
228
100
200
273
83
311
314
221
324
252
200
340
248
417
631
150
290
136
192
92
$23,675,000
$6,600,000
$22,350,000
$11,100,000
$8,750,000
$21,800,000
$3,500,000
$111,500,000
$16,700,000
$4,320,000
$6,450,000
$14,100,000
$31,000,000
$15,249,000
$8,640,000
$10,425,000
$50,292,000
$31,964,400
$7,180,000
$3,050,000
$14,500,000
$35,250,000
$3,549,400
$57,250,000
$36,296,300
$36,296,245
$18,950,000
$19,050,000
$7,000,000
$31,700,000
$21,774,194
$18,000,000
$47,170,000
$8,150,000
$11,500,000
$4,800,000
$12,400,000
$11,800,000
$95,464
$27,386
$98,026
$77,083
$41,667
$62,644
$48,611
$303,815
$52,188
$36,000
$40,313
$58,750
$92,262
$79,422
$32,727
$93,080
$132,000
$95,132
$31,491
$30,500
$72,500
$129,121
$42,764
$184,084
$115,593
$164,236
$58,488
$75,595
$35,000
$93,235
$87,799
$43,165
$74,754
$54,333
$39,655
$35,294
$64,583
$128,261
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TAMPA
Average Year of Construction
Average # of Units Per Transaction
2010
350
314
2006
2005
284
300
2000
259
1995
250
211
1989
1990
200
1987
1985
1974
1975
100
1970
1965
50
1960
1955
0
Class A
Class B
Class C
AVERAGE
Class A
Class C
AVERAGE
Average Price Per Unit
Average Transaction Sales Price
$45,000,000
Class B
$140,000
$40,567,175
$40,000,000
$130,144
$120,000
$35,000,000
$100,000
$30,000,000
$80,000
$23,515,940
$25,000,000
$18,508,720
$20,000,000
$15,000,000
$86,238
$77,863
$54,163
$60,000
$12,269,855
SALES TRANSACTIONS
1980
150
$40,000
$10,000,000
$20,000
$5,000,000
$0
$0
Class A
Class B
Class C
AVERAGE
Class A
Class B
Class C
AVERAGE
Class A represents renovated properties and properties built from 2000-2015, 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 2014 and 2015.
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TAMPA
PROPOSED DEVELOPMENT
Communities Proposed (100 Units and Above)
Developer
Community
Units
Road/Intersection
Submarket
NRP Group
NRP Times Site
366
4th St./Second Ave.
Peninsula South
Pizzuti Builders
Dunedin Gateway
124
Main St./Milwaukee Ave.
Peninsula North
Dockside Investors LLC
Broadway
258
66th St./126th Ave.
Peninsula South
Altis Cardinal
Skyline 5th
76 (178 COMPLETE)
441 33rd St.
Peninsula South
Richman Group
Grady Square
300
3860 Columbus Dr.
Tampa Central
Taylor and Mathis
Metwest
254
Boy Scout Blvd./Lois Ave.
Tampa Central
Crescent Communities
Crescent Westshore
374
Lois Ave.
Tampa Central
Soho Capital
Pearl
300
Palm Ave.
Tampa Central
Collier Companies
Icon
180
Bruce B. Downs Blvd.
Tampa Northeast-1
Richman Group
Aurora
351
124 Morgan St.
Tampa South
Carter and Associates
Grant Block
375
901 Franklin St.
Tampa South
Framework Group LLC
Ybor City
234
1512 East 12th Ave.
Tampa South
ABC Capital Corp.
ABC Apartment Site
188
South West Shore Blvd.
Tampa South
Framework Group
AER
350
Straz Center
Tampa South
Altman Companies
Altis Grand Central
273
Grand Central Ave.
Tampa South
Florida Crystals
Amazon Hose and Rubber Site
270
Kennedy Blvd.
Tampa South
Lincoln Property Company
Aspire
408
West Fortune St.
Tampa South
Phillips Development
Gas Worx Site
716
1400 Channelside Dr.
Tampa South
Mercury Advisors
Martin at Meridian
323
Twigs Ave.
Tampa South
Pollack Shores Real Estate
Havana Square
274
404 Rome Ave
Tampa South
Related Group
Related Group Tower
340
Temple Palms Ave.
Tampa South
Oxford Properties
Crosstown Walk
315 (342 COMPLETE)
10151 Iris Crosstown Dr.
Tampa South
Aspire
Grady Square
Noho Flats at Hyde Park
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TAMPA
Submarket
Dockside Investors LLC
Boulevard
260
66th St.
Peninsula Central
Pollack Shores Real Estate
Solaris at Clearwater
426
28555 Gulf to Bay Blvd.
Peninsula Central
American Land Ventures
330 Third Street
358
330 Third St.
Peninsula South
The Allen Morris Company
Hermitage
348
700 First Ave.
Peninsula South
Northwood Ravin
4310 Spruce
262
4310 Spruce St.
Tampa Central
Northwood Ravin
Valera Westshore
215
Lois Ave.
Tampa Central
Contravest
Addison at Tampa Oaks
262
Fletcher Ave.
Tampa Northeast-1
Wood Partners
Alta Terra Bella
311
State Route 54
Tampa Northeast-2
AG Spanos
Bonterra Parc at Northwood
262
2168 Druid Rd.
Tampa Northeast-2
Bainbridge Communities
Harbour Island
235
Knights Run Ave.
Tampa South
Novare Group
Skyhouse Channelside
320
12th St.
Tampa South
Tampa Housing Authority
Tempo
203
Ray Charles Blvd.
Tampa South
Bainbridge Communities
Bainbridge Brandon
255
Falkenburg Rd.
Tampa Southeast
Newland Communities
Circa at Fishhawk Ranch
260
Fishhawk Ranch Blvd.
Tampa Southeast
Lakehouse of Plant City LLC
Lakehouse
125
3001 Lakehouse Cove Isle
Tampa Southeast
WRH Realty
Valrico Station
160
104 Valrico Station Rd.
Tampa Southeast
Circa at Fishhawk Ranch
4310 Spruce
Addison at Tampa Oaks
COMMUNITIES UNDER CONSTRUCTION
Developer
Communities Under Construction (100 Units and Above)
Community
Units
Road/Intersection
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TAMPA
Carolinas
Georgia
Virginia
Tennessee
Kentucky
Alabama
Florida
West Virginia
WHY CHOOSE CAPSTONE?
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 June 2015, 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
Joe (cover), Apalapla (p.2 botton, left), Azalia Negron (p. 2 top, right) via https://creativecommons.org/licenses/by/2.0/.
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