State public pension fund buys Pierhouse at Channelside

BUYER: Pierhouse Channelside Inc. (principals: Stephen Spook, Lamar Taylor and Maureen Hazen), Tallahassee
SELLER: RD Channelside LLC
PROPERTY: 1226 E. Cumberland Ave. also known as 114 and 120 S. Meridian Ave., 110, 125, 128 and 210 S. 11th St., 209 S. 12th St. and a portion of South 12th Street, Tampa
PRICE: $76.5 million
PREVIOUS PRICE: $6.5 million, December 2010
LAW FIRM ON DEED: Greenberg Traurig PA, Miami

PLANS, DESCRIPTION: Florida's public pension fund purchased the new 356-unit Pierhouse at Channelside apartment development for $76.5 million.

The price equated to $214,888 per unit. That figure is higher than the current average price per unit for multifamily space ($70,803) in the Tampa Bay area, according to the CoStar Group.

Miami's Related Group completed construction of the four-story upscale apartment in August.

Although the development still has a large vacancy rate, 39.9% as of the Costar Group's last review of the property, its average asking rent comes in at $1,676. Asking rent starts in the $1,200's for a 539-square-foot studio and goes up to around $2,500 for the most expensive two-bedroom/two-bathroom units.

Community amenities include a gated parking garage, nautical-themed art park, clubhouse, courtyards, two-story fitness center, swimming pool, spa and gazebos with fire pits and grilling areas.

The state public pension fund invests 10% in real estate, says Dennis MacKee, a spokesman for the State Board of Administration. He says the fund invests the majority in core real estate and a smaller portion to enhanced or opportunistic real estate. The fund has 12 apartment investments, but each investment can contain multiple properties, according to MacKee.

Engler Financial Group started marketing the property for sale shortly after it was opened in September.

Heitman is the asset manager for the fund, and ZRS Management is the property manager for the Pierhouse at Channelside.