SEPTEMBER 13, 2019|
CoStar Market Insights: Second Premium-Priced Multifamily Transaction in Days Keeps Capital Flowing Into Tampa
500 Harbour Island has sold for a record $440,000 per unit, the second record-setting transaction in Tampa this month. (CoStar)
For the second time in as many weeks, Tampa has set a new record multifamily price per unit after JLL announced that the 500 Harbour Island apartments at 500 Kings Run Ave. sold Thursday for a little over $440,000 per unit.
In addition to being the first Tampa property to surpass the $400,000 per unit watermark, the transaction is also substantially greater than the market’s previous high, established when the Camden Pier District apartments sold in 2018 for $353,000 per unit.
Earlier this month, the Novel Riverwalk apartments set a price per unit record for the Downtown Tampa submarket when it sold for $312,000 per home, surpassing that submarket’s prior highest per unit sale of The Element in 2017, which traded at $285,000 per home.
In the latest blockbuster sale, Northwestern Mutual purchased the 235-unit Harbour Island apartments for $103.45 million from Forge Capital Partners and Intown/Framework Group. The 235-unit, 22-story apartment tower was completed in late 2016 and achieved a stabilized occupancy rate after only five quarters. The 321,455-square-foot, Class A multifamily complex is located in Hillsborough County, just south of downtown Tampa, and features hotel-style amenities and skyline views.
Tampa’s multifamily investment market is on a roll this year, having already established some new sales metric records and being on pace to break a few more.
The total sales volume for 2019 is now nearly $2.5 billion, already the second-highest year on record, and is on pace to easily surpass last year’s record $2.77 billion. The previous three completed quarters in Tampa are the three highest multifamily sales volume quarters in Tampa’s history. And even if no more trades occur there in the third quarter, it has already achieved a top-five quarterly volume.
Tampa’s market pricing has never been higher, according to CoStar’s latest Market Price Index. Furthermore, the growth rate has accelerated over the past two years. 500 Harbour Island marks the fourth property to trade in excess of $300,000 per unit since the start of 2018, with three such sales coming in just the past nine months. In addition to 500 Harbour Island, Camden Pier District, and Novel Riverwalk, The Hermitage sold earlier this year for approximately $309,000 per unit.
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