Tampa nonprofit buys Southland Apartments

BUYER: HFSF 2 LLC (principal: David Reed), Tampa
SELLER: Reel Properties of Tampa Bay Inc.
PROPERTY: 3716 and 3717 W. Wyoming Ave., Tampa
PRICE: $2.16 million
PREVIOUS PRICE: $3.96 million, April 1999
LAW FIRM ON DEED: Trenam Kemker, Tampa

PLANS, DESCRIPTION:
An unnamed nonprofit purchased the 48-unit Southland Apartments for $2.16 million.

The price equated to $45,042 per unit or $65 per square foot. That per-unit figure is lower than the average for multifamily space ($70,803) in the Tampa Bay area, according to the CoStar Group.

Located near MacDill Air Force Base, the three-building concrete-block apartment complex was built in 1975. It features only one-bedroom units. Southland Apartments' occupancy was in the low 90% range.
David Reed, treasurer of the nonprofit and who separately owns the Tampa private equity firm Shepard Capital Partners LLC, says the property was purchased to create low-income housing.

“It was a market-rate property, but given the age of the structure and the fact that it was all one-bedrooms, it tended to appeal to lower-income renters,” Reed says. “We plan to repair it a little, investing something like $10,000 a unit. We liked the location and the price.”

Zach Ames, Kevin Kelleher, Darron Kattan and Robert Goldfinger of Franklin Street represented the seller.

NDC Real Estate Management Inc. will mange the apartment for the non-profit.

The purchase entity, HFSF 2 LLC, mortgaged the property to First Housing Development Corp. for $900,000 and took out a second mortgage with Calvin Reed for $1.26 million.