Gateway Apartments sell for $5.25 million

BUYER: Gateway Apartments Properties LLC, Largo

SELLER: Tritex Real Estate Advisors Inc.

PROPERTY: 2000 Gandy Blvd., St. Petersburg

PRICE: $5.25 million

PREVIOUS PRICE: $8.57 million, July 2008

LAW FIRM ON DEED: Carlton Fields PA, Atlanta

PLANS, DESCRIPTION: A company led by Largo apartment investor Ben Mallah purchased the 144-unit Gateway Apartments in St. Petersburg for $5.25 million.

The price equated to $36,458 per unit.

The 25-year-old property is located in the Gateway Business district near a number of Tampa's largest companies including Raymond James Financial, The Home Shopping Network and Tech Data. The property was 90% occupied at the time of the sale, but rents were below the market, according to Bryn Merrey, vice president and regional manager of Marcus & Millichap's Tampa office.

Michael Regan and Francesco Carriera of Marcus & Millichap's Tampa office handled the transaction.

The property was purchased as part of 1031 exchange. “The buyer is a really good operator, so realistically this is probably a 9% cap,” Merrey says.