50-year-old Clearwater apartment complex sells for more than $80 million

CLEARWATER — In yet another sign that investors aren’t afraid to part with their money, a 50-year-old apartment complex in Clearwater has sold for $80.2 million.

The 372-unit Genesis Apartments at 530 Fairwood Ave. was sold to TLR Group, a Tampa-based real estate investment and management company. The 22-building property, which features one-, two-, and three-bedroom units averaging 920 square feet, was built in 1972.  The complex is just west of U.S. 19 near Drew Street. It’s about a mile from the St. Petersburg College’s Clearwater campus.

TLR plans to spend an additional $1.5 million on capital improvements.

The price tag is more than double the $35 million the previous owner paid for the property in October of 2018 and just another sign of how rising sale prices for multifamily properties across the region aren't likely to slow down any time soon. These rising prices are driven by a combination of outside investors flooding the state and the demand, coupled with skyrocketing rents, for apartments.

The sale of the Genesis Apartment was completed with $71.25 million in acquisition financing arranged by CBRE Capital Markets.  

Eric Fixler, executive vice president at CBRE, says in a statement that TLR was attracted to the property because of recent improvements and rent growth. CBRE, he says, was able to “secure a senior loan with layered mezzanine financing representing 87% loan-to-cost” designed to give the ownership a chance to “move quickly and maximize value in the property.”

“The buyer’s planned additional improvements and management capabilities will continue to see operational improvements and increased value at the property.”

TLR, according to its website, owns or is developing about 15 properties in the Tampa Bay area as well as four in Montreal.