Tampa island apartments go for $125,000 per unit

The Place at Davis Island
The Place at Davis Island

Marcus & Millichap reported the sale of the leasehold interest in a 40-unit apartment property in Tampa for $125,000 per unit in an off-market deal.

The buyer, a private investor based in California, paid $4 million for The Place at Davis Island, which consists of 40 one-bedroom apartments with 700 square feet of rentable space. The seller was a Tampa-based partnership.

The apartment property is located at 401 Danube Avenue in the popular Davis Islands area of Tampa, a two-island neighborhood just south of the downtown district, overlooking the Port of Tampa.

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Ten of the 40 units are renovated apartments with updated kitchens, new flooring and fixtures, and stacked washer-dyers. The buyer plans to renovate the other 30 units and increase the below-market rents.

Casey Babb, vice president investments in Marcus & Millichap’s Tampa office, and Tyler Leeson, first vice president investments in the firm’s Newport Beach office, put the off-market deal together.

“The Place at Davis Island was a unique transaction for Tampa in that it was subject to a 99-year ground lease which was put in place in the 1970s,” Babb said in a written statement. He also stated that the seller had owned the leasehold interest for nearly 20 years and plans to trade into a larger asset.