Waterfront apartment, home sells for $1.3 million

BUYER: La Playa I LLC (manager: McKinley Associates Inc. and Albert Berriz), Ann Arbor, Mich.
SELLER: Fountain Court Apartments LLC
PROPERTY: 105 110th Ave., Treasure Island
PRICE: $1.28 million
PREVIOUS PRICE: $845,000, May 2009
LAW FIRM ON DEED: Broad and Cassel, Orlando

PLANS, DESCRIPTION:
Ann Arbor, Mich.-based McKinley Inc. purchased the nine-unit Mont Carlo Apartments for $1.28 million.

The price equated to $141,667 per unit. That figure is higher than the two-year average price per unit for multifamily space ($72,609) in the Tampa Bay area, according to the CoStar Group.

Located on Boca Ciega Bay, the property includes a two-story, 8-unit multifamily apartment building and a 1,470-square-foot single-family home. Amenities include a laundry facility, two boat slips and a boatlift. The two-bedroom/two-bathroom home also has a swimming pool.

The seller recently installed a new roof, central heating and air conditioning, ceramic tile, vinyl flooring, new cabinets and new windows.

The community was fully occupied at the time of the sale.

Francesco Carriera, Joshua Teplitzky, Cameron Barbas and Michael Regan of Marcus & Millichap's Tampa office represented the seller.

The purchase price equated to a payoff ratio based on current income (capitalization rate) of less than 5%. However, rents, Teplitzky says, are artificially low and offer an opportunity to improve the investment.

“The buyer plans to do even more improvements,” he says.

The 1,600-employee McKinley invests and manages residential and commercial real estate. Its $4.6 billion portfolio includes more than 21 million square feet of office and retail space and more than 35,000 multifamily units in 34 states.

The purchase entity, La Playa I LLC, mortgaged the property to Comerica Bank for $3.62 million.