Tampa apartment complex for sale

Real Estate Alert, May 19, 2004

A Colonial Properties partnership is marketing a large apartment complex near Tampa that's expected to fetch more than $50 million.

The property, Colonial Grand at River Hills, consists of 776 garden-style units on 78 acres in Temple Terrace, about 11 miles northeast of downtown Tampa. At the expected price, the buyer's initial annual yield would be about 7.3%. Cushman & Wakefield has the listing.

Colonial Grand is 93% occupied and produces about $3.7 million of net operating income. Rents for one-bedroom apartments average $607, while two-bedroom units fetch $774 and three-bedroom apartments go for $988.

The development consists of 78 two- and three-story apartment buildings and two freestanding clubhouses. It also includes two swimming pools, a fitness center, a playground and two tennis courts.

Temple Terrace is surrounded by Interstates 4, 75 and 275. The area boasts a low unemployment rate and is expected to add 86,000 new jobs over the next three years. The median household income in Temple Terrace is $53,000 per year.

Colonial, a diversified REIT based in Birmingham, Ala., owns the complex in partnership with CMS Cos., a private financial-services company based in Philadelphia. Colonial and CMS have formed a number of joint ventures over the years in which CMS typically bought full or partial stakes in properties and Colonial acted as manager.

For more information, call Byron Moger of Cushman at 813-223-6300.