In late July, Odyssey Properties Group acquired two multifamily communities in Florida — The Easton (formerly Park at Vincenzo), a 184-unit community in Tampa, and Tidewater at Atlantic Beach (formerly The Park at Rossini), a 120-unit community in Jacksonville.
Derek Graham, president and principal at the Los Angeles-based multifamily investment sponsor and private equity real estate firm, said the firm was able to acquire the properties at below-market value. Both Tampa and Jacksonville have benefited from workers relocating to Florida recently. Between July 2020 and July 2021, the state posted a 220,890 net domestic migration gain and a 38,590 net international migration gain, according to the U.S. Census Bureau. Both ranked No. 1 in the nation.
“We're interested in the Tampa, Orlando and Jacksonville market, for starters,” Graham told Multifamily Dive. “And we're interested in the state as a whole because of the population influx that is somewhat staggering.”
The Easton, built in phases between 1972 and 1974, is positioned a few blocks from major employers and entertainment attractions and has direct access to downtown Tampa, Amalie Arena and Tampa Riverwalk. The property consists of one- and two-bedroom units, each with a private patio or balcony, across 23 buildings. Its amenities include two pools with sundecks, a fitness center, a playground, tennis courts, a business center and a coffee bar.
Tidewater at Atlantic Beach, built in 1986, provides a mix of one- and two-bedroom units across nine buildings. The property sits 2 miles from the Atlantic Ocean and the Mayport Naval Base.
The previous owners of the Easton invested more than $2.3 million in interior renovations, enhancing amenities and alleviating exterior and common area deferred maintenance. At Tidewater at Atlantic Beach, the previous landlords implemented initial upgrades to all unit interiors.
“These communities present an opportunity to update interiors to a luxury renovation scope, enhance the properties’ existing amenities, cure deferred maintenance and improve the properties’ curb appeal through modern rebranding,” said Brian Dempsey, director of acquisitions for the Southeast U.S. at Odyssey.
Graham told Multifamily Dive that the company is comfortable coming into properties that may have had some renovations but still needs upgrades. In fact, it is currently closing a deal in another part of the country in that situation.
“We're in escrow on a deal right now in Phoenix, and 50% of the interiors have been renovated and the other 50% are in what we call ‘classic condition,’” Graham said. “That is sufficient for us to make the returns exciting, even if we only have half the property to renovate and upgrade.”
Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday.
