Arkansas oncologist buys Columbia Park Apartments

BUYER IN A QUITCLAIM DEED: Sumunni Investments LLC (manager: Dr. Balan Nair), Little Rock, Ark.
SELLER: Blue Valley Apartments Inc.
PROPERTY: 14309 N. 18th St., Tampa
PRICE: $1.39 million
PREVIOUS PRICE: $200,000, April 2002
LAW FIRM ON DEED: Honigman Miller Schwartz and Cohn LLP, Kalamazoo, Mich.

PLANS, DESCRIPTION:
Little Rock Oncologist Dr. Balan Nair purchased the 24-unit Columbia Park Apartments for $1.39 million.

The price equated to $57,969 per unit. That figure is lower than the average price per square foot for multifamily unit ($70,803) in the Tampa Bay area, according to the CoStar Group.

Built in 2004, the buildings are concrete block with a stucco exteriors covering 2.36 acres of land. The apartment features three, two-story residential buildings composed entirely of three-bedroom/two-bathroom units with 1,040 square feet of rentable living space.

The property had just nine rented units at the time of the sale and many of the other units required improvements before they would be rentable.

Michael Donaldson, vice president investments and Nicholas Meoli, senior associate in Marcus & Millichap's Tampa office, handled the transaction.

The purchase price equated to payoff ratio based on pro forma income (capitalization rate excluding unusual and nonrecurring events) of about 8%.

Fannie Mae foreclosed on the property from Columbia Apartments LLC in March and assigned it to the current seller, an affiliate of Ocwen Financial Corp.

“Bringing an REO foreclosure sale to market in 2014 is not what it used to be several years ago,” Michael Donaldson says in a press release. “This property garnered so much interest from the local, national and international markets that our tour days were completely booked with upwards of several hundred inquiries into the property.”

Meoli says the buyer was particularly attracted by the size of the units and its location near the University of South Florida and surrounding hospitals.

Nair owns about 44 multifamily units in the Tampa Bay area.