Sarasota-based Insula Companies
is making another move into the Florida apartment arena with its $12 million purchase of the Park East Apartments on Bearss Avenue in North Tampa. This is the third apartment complex bought in Florida in 2014 and the 13th in the last five years.
"We really like the area, that particular street -- Bearss -- has got a lot of exposure, a lot of drive-by traffic," says Jeff Talbot, Insula's director of acquisitions. "We love the growth going on in there. It's one of the areas you want to be in Tampa."
Insula specializes in acquiring apartment complexes and revitalizing them for investors. Other properties are in Orlando, Jacksonville and Atlanta.
, at 2020 Bearss, is an attractive investment due to its location within an established neighborhood that is experiencing new growth as a result of its proximity to university and medical campuses of University of South Florida and Florida Hospital Tampa.
The complex of 192 one- and two-bedroom apartments will have a typical mix of tenants, Talbot says, including young professionals just out of college, young families, empty-nesters and possibly a few students.
Insula plans to spend between $300,000 to $500,000 on modest renovations.
Plans are to test market amenities, such as vinyl wood floors, upgraded counter tops and cabinets, in about 10 to 20 apartments, Talbot says. A new metal roof will be installed on the clubhouse and fitness center as well.
Current residents will be asked for feedback on the renovations and more apartments could be upgraded in future. Park East is about 95 percent occupied. With its acquisition, Insula has more than 3,300 apartments and $150 million in assets in Florida-based complexes.
The Park East property went through tough financial times in recent years and landed in foreclosure in 2010. A California company bought it along with similar properties around the country. After spending money to upgrade the complex, the apartments went on the market.
To qualify for purchase by Insula, apartments must be 15 to 40 years old with a minimum of 150 units that need cosmetic or substantial rehabilitation work. Park East was built in 1986.
Writer: Kathy Steele
Source: Jeff Talbot, Insula Companies