Garrity Land Development buys Dale Mabry Palms

BUYER: GDG Properties of 5901 DM LLC (principals: John Garrity and John Garrity II), Tampa

SELLER: 5901 S. Dale Mabry LLC

PROPERTY: 5901 S. Dale Mabry Highway, Tampa

PRICE: $2 million

PREVIOUS PRICE: $500,000, December 2009

LAW FIRM ON DEED: Macfarlane Ferguson & McMullen, Clearwater

PLANS, DESCRIPTION: The Garrity Land Development Group purchased the 40-unit Dale Mabry Palms Apartments for $2 million.

The price equated to $50,000 per unit or a purchase price payoff based on current income (capitalization rate) of 9.8%.

The seller, Perry Pavicic, who owns a New Jersey construction rehab company, purchased the garden-style apartment community complex in 2009 for $500,000 and the proceeds of an insurance payout (equal to a total of $800,000 or $18,182 per unit). At the time of that initial sale, the property was completely vacant and had been taken back by its lender, Citibank NA.

Pavicic spent more than $1 million renovating the interiors, exteriors and common areas of the 10-building property.

The 26-year-old apartment complex was 82.5% occupied at the time of the most recent sale.

John Garrity II, managing member of The Garrity Development Group, says the new ownership is planning to rename the development and hopes to attract residents from the nearby MacDill Air Force Base.

“Our core model is to buy properties in 'A' locations that need improvements,” Garrity says. “This property didn't need any improvements, but the financial model still made sense. We plan to focus on customer services and keeping the good tenants happy.”

Garrity says the $2 million price came from $500,000 and an assumption of a $1.5 million mortgage loan.

Casey Babb and Luis Baez of Marcus & Millichap's Tampa office handled the transaction.

The Garrity Land Development Group also owns the 32-unit Hyde Park Pointe apartment complex on Armenia Avenue in Tampa.