The Florida market may be cooling after its astronomical rent increases in 2021 and 2022, but it's still a coveted area for apartment investors around the country.

Universe Holdings is one of the ownership groups that has been eyeing the Sunshine State, targeting properties around Tampa, among other locations. 

“Tampa is an emerging market, not only in the state of Florida but also around the country,”  Noah Kaufman, an acquisitions analyst at the firm, told Multifamily Dive. “What attracted us to Tampa was the economic, population and employment growth. We anticipate this to continue in the years to come.”

After three years of studying the state, the Los Angeles-based firm finally entered Florida with the $66 million acquisition of Pearce at Pavilion in Tampa in Janurary. Universe assumed a Fannie Mae loan at a 4.13% interest with several years remaining on the term, at a 47% loan to value. 

“This property came to us semi-off market,” Kaufman said. “When the opportunity was presented to our firm, there was no competition.”

Strong appeal

A number of factors drew Universe to the 250-unit Pearce at Pavilion, including the quality of the asset, assumable in-place financing and location seven miles from downtown Tampa, according to Kaufman.

“We appreciate the property’s location on the 301 Highway and that it is north of current projects under construction,” Kaufman said.

Pearce at Pavilion, a class A apartment community, offers one- and two-bedroom floor plans featuring gourmet kitchens, granite countertops, Whirlpool stainless steel appliances, wood-style flooring and in-suite full-sized washers and dryers. 

Amenities include a resort-style pool and spa, poolside covered seating, clubhouse with coffee bar, Wi-Fi café with business center, multimedia game room, fitness center, package room and fenced-in dog park.

More acquisitions on the horizon

Universe, which has transacted more than 7,500 apartment units throughout California and New Jersey, is eyeing more large apartment complexes in central, northeast and southeast Florida over the next 12 to 24 months. The state’s growing economy and population, business-friendly environment and low taxes are draws for the company.

“We plan to be as active as the market allows us to be,” Kaufman said. “We would ideally like to purchase a couple more assets in Florida in 2024 and more in 2025 and after. The plan is to scale our operations in Florida and diversify our existing multifamily portfolio.” 

Still, Universe won’t abandon its home base on the West Coast. “We still plan on buying in other states, especially California, but in select markets within the state,” Kaufman said.

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