The property is poised to benefit from positive demographic shifts and high demand for class-A housing in Tampa Bay market
Castle Lanterra Properties (CLP), a New York-based national real estate investment firm, acquired Vue at Belleair, a newly-constructed 339-unit luxury garden apartment community at 1551 Flournoy Circle West in Clearwater, Florida. The firm purchased the property from developer Flournoy Companies for $77.25 million, representing a cost of $227,876 per unit.
While recognized for investing in value-add properties, CLP believes that Vue at Belleair represents a remarkable opportunity given a lack of new, high-quality housing in the immediate area and a range of positive demographic shifts occurring more broadly in the Tampa Bay area.
“The full lease-up of this property is a testament to the fact that Flournoy Companies has developed one of the most beautifully constructed class-A properties in this Tampa Bay submarket and reflects the high demand for housing of this caliber in the area,” said CLP CEO Elie Rieder. “While value-add is our bread-and-butter, we believe this striking newly-constructed product will allow us to achieve steady, controlled appreciation given its unparalleled location near the Gulf but outside of flood zones. The quality of construction and optimal location within the submarket gives us confidence that we can achieve long-term success by implementing our best-in-class management and capitalizing on this gap in the market.”
Since its foray into South Florida in 2017 with its acquisition of Loftin Place in West Palm Beach, CLP has closely monitored the Tampa Bay area and its remarkable rebound since the global recession. With this latest transaction, CLP currently owns and operates 26 properties comprising more than 7,000 units. The firm continues to seek opportunities to acquire properties across the U.S. that are positioned to benefit from positive demographic and economic shifts.
In a sweeping review of 515 U.S. cities conducted by New York-based WalletHub, Tampa ranked 10th among all large American cities when comparing metrics such as population, job and business growth, as well as building permit activity. The area’s friendly business environment and high quality of life has continued to attract residents and businesses, boosting housing demand and rent growth.
“The Tampa Bay area has become a target market for us based on the value proposition new construction presents coupled with numerous positive demographic trends the area has experienced in recent years, including rapid population growth that has made it one of the fastest-growing U.S. metro areas,” said Benjamin Loney, Head of Acquisitions at CLP. “We’re optimistic that these positive trends will continue to create robust demand for class-A housing as existing supply is largely absorbed and a rapid influx of new residents demands higher-end product.”
Vue at Belleair’s one-, two- and three-bedroom apartments feature nine-, 10- and 11-foot ceilings and sweeping views of Tampa Bay, with property amenities including a rooftop terrace with bay views, a saltwater swimming pool, an outdoor kitchen and two dog parks. In addition, the amenity building houses a performance fitness center with wellness and spin room; a gourmet coffee bar; two massage rooms and a billiards room. The property is located in Pinellas County along US-19, within a 25-minute drive of Tampa’s Westshore principal business district and Gateway residential district, Clearwater’s central business district and Clearwater International Airport, as well as downtown St. Petersburg.
The largest resident age group at Vue at Belleair, between 26 and 46 years old, has an average household income of over $115,000 per year, which equates to a 5.9x income-to-rent ratio that is approximately double the 2.5-3.0x market standard typically required to qualify for a lease. The income level demonstrates a tenancy that can absorb rent and fee increases without being displaced due to affordability and reflects a growing Tampa economy that has the largest concentration of financial services jobs in the Southeast and has experienced a tremendous recent uptick in the number of incoming tech companies.
The steady flow of quality jobs has helped achieve a current unemployment rate of just 2.9%. The city has over 10.4 million square of office space and several high-profile office projects in the pipeline, including the 20-story, 380,000-square-foot 1001 Water Street—part of the $3 billion multi-phased Water Street Tampa development that will include more than nine million square feet of office, residential, retail, hospitality, educational and cultural space when complete. The region has recently attracted companies such as Mo¬saic, the first Fortune 500 firm to relocate to Tampa, as well as WebstaurantStore, the world’s largest online restaurant supply company.
Luis Elorza from Cushman & Wakefield Tampa was the lead broker in the transaction.
