Crescent Heights buys Element, pays $98 million, equal to 4% cap

BUYER: 808 Franklin LLC, Miami
SELLER: Element Marketing LLC
PROPERTY: 808 N. Franklin St., Tampa
PRICE: $98 million
PREVIOUS PRICE: $7.5 million, December 2006
LAW FIRM ON DEED: Greenberg Traurig PA, Miami

PLANS, DESCRIPTION: Miami-based Crescent Heights purchased the 395-unit Element apartment development in Tampa's Arts District for $98 million.

The price equated to $248,101 per unit.

The 365,000-square-foot high-rise also features 15,000 square feet of retail space. Amenities include two swimming pools, a fitness center, 24-hour concierge, guest suites, and a poolside clubroom with a kitchen. The CoStar Group reports that units average 1,030 square feet and that the property had an average vacancy at the time of its last review of the property of 5%.

It features parking on the first nine floors.

The 35-story building was sold as part of a three-property portfolio sale, which also included Mezzo in Atlanta and The Lex in Chicago.

The purchase price equated to a payoff ratio based income (capitalization rate) of about 4%. The historically low cap rate was seen as a strong sign that Crescent Heights plans to convert the property to condominiums sometime in the future.

Crescent Heights declined to comment on the purchase.

Eastdil Secured, led by Jeff Weber, and HFF, led by Matthew Lawton, represented seller Chicago-based ST Residential.

The purchase entity, 808 Franklin LLC, mortgaged the property to BREDS II Mortgage Corp. for $57.93 million.