Exclusive: Apartments near Carrollwood sell for $77 million
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published:

A massive multifamily property near Carrollwood has been sold to a Nashville investment firm for $77 million.

Lakeshore Club, a 638-unit apartment complex on Egypt Lake, was sold to a corporate entity linked to Covenant Capital Group in late April. Nick Meoli and Mike Donaldson of Cushman & Wakefield represented the seller, Neil Sazant, principal of Harbour Realty Advisors Inc., in the transaction.

Cushman announced the sale Friday. The deal closed April 28, according to Hillsborough County property records. The price breaks down to $120,689 per apartment.

“Historically, the property averages 99 percent occupancy and was left in predominantly classic condition, giving the buyer an exceptional opportunity to fully reposition the asset," Meoli said in a statement.

The property sits on nearly 66 acres, Cushman said, and amenities include two swimming pools, two tennis courts, a lakefront sand volleyball court, recreation deck, playground and fitness center. It last sold for $35.5 million in 2004, county records show.

Value-add apartment plays, in which a buyer plans a renovation to increase the property's value, are a rarity in Tampa Bay. The majority of properties that would qualify as "value-add" have already been sold in the last five to seven years. Covenant Capital is planning to renovate Lakeshore, and Donaldson said the group has a track record of success with similar properties.

“Given the current condition of the property, the buyer anticipates rent increases by over $325 per unit on average after completing the capital improvements," Donaldson said in a statement.