CBRE Multifamily Tampa is pleased to announce the sale of Oak Leaf Village, a 118 unit community located in Palmetto, FL, directly north of Bradenton on Florida’s Southwest coast.
This concrete block, 1981 construction asset consists of 83% two-bedroom floorplans and 17% three-bedroom floorplans. Average rents at the time of the sale were $1,026 and occupancy was at 87% at the effective date of the contract. Throughout the duration of the contract, the seller constructed the 4 “burn units” that have been down for the last several years. By the time of closing, the construction was complete and these units were leased bringing total occupancy above 90%.
“The narrative around Palmetto/Bradenton is changing from the investor’s perspective. With volumes on new residents moving into these locations every day, its continuing to be viewed more and more as a strong suburb of Tampa and St. Pete. In turn, we are seeing increased demand for assets in these locations, translating into competitive bidding environments, and compressed cap rates” Said Thavis.
Ultimately, a private investor from New York was awarded the asset. With 55% of the units renovated, the investor plans to renovate the remaining balance of classic units while strategically implementing an exterior improvement plan.