Tzadik Management buys four Gulf Coast apartments

BUYER: Tzadik Acquisitions LLC (Tzadik Management Group 2 LLC), Miami
SELLER: 5013 Sligh LLC
PROPERTY: 5013 E. Sligh Ave., Tampa
PRICE: $6.45 million
PREVIOUS PRICE: $5.32 million, December 2011

SELLER: 1307 127th LLC
PROPERTY: 1307 E. 127th Ave., Tampa
PRICE: $4.32 million
PREVIOUS PRICE: $2.08 million, February 2012

SELLER: TMF5 LLC
PROPERTY: 12406 N. 15th St., Tampa
PRICE: $4.32 million
PREVIOUS PRICE: $2.05 million, July 2011

SELLER: 13533 Gragston LLC
PROPERTY: 13533 Gragston Circle, Tampa
PRICE: $4.23 million
PREVIOUS PRICE: $3.05 million, February 2012

SELLER: 1809 19th LLC
PROPERTY: 2405 Leon Ave., 1809 and 1840 19th St., 1549 24th St., 1717 29th St., 1512 and 1521 30th St. and 1606 36th St., Sarasota
PRICE: $3.9 million
PREVIOUS PRICE: $2.1 million, May 2012
TITLE FIRM ON DEED: Fidelity National Title of Florida Inc., Tampa

PLANS, DESCRIPTION:
Miami-based Tzadik Management purchased three Tampa apartments and one in Sarasota for a total of $23.22 million.

The firm acquired the 264-unit Bella Mar in two deeds for a combined $8.64 million, the 160-unit Del Rio for $6.45 million, 120-unit Lago Bello for $4.23 million and the 119-unit North Washington in Sarasota for $3.9 million.

The combined price equated to $35,023 per unit. That figure is lower than the average price per unit for multifamily space ($70,803) in the Tampa Bay area, according to the CoStar Group.

The four properties were part of a 14-apartment portfolio Tzadik Management acquired from Avesta Communities LLC for $81.36 million or $37,000 per unit. The portfolio contained 2,199 units in Tampa, Sarasota, Lakeland, Orlando and Jacksonville.

Darron Kattan, Kevin Kelleher, Deme Mekras and Elliot Shainberg, all of Franklin Street, represented the seller. Evan Kristol, senior vice president of investments in Marcus & Millichap's Fort Lauderdale office, and IPA (Institutional Property Advisors) Senior Director Still Hunter III represented the buyer.

“The seller purchased most of these properties as distressed opportunities after the last real estate crash,” Kattan, managing director of Franklin Street's Real Estate division, says in a press release.
“They were able to clean up and stabilize the assets and capitalize on the recovery of the marketplace and the demand for multifamily properties in Central/West Florida.”

Kristol says the buyer plans to complete the interior and exterior upgrades, stabilize these assets and then sell a few. The portfolio gives Tzadik Management a presence in new markets that it can leverage to grow, he says.

The portfolio also included the Brandywyne, Landings and Country Place in Winter Haven, Jackson Heights and Kings Trail in Jacksonville, Lakeland Manor in Lakeland, Mount Dora in Mount Dora, Rolling Hills in Orlando and Tanglewood in Eustis. All of the properties were constructed between 1966 and 1996.

Founded in 2007 by Adam Hendry, Tzadik Management acquires, develops, renovates and stabilizes multifamily assets throughout Florida.