The Hidden River Apartments are 220 units that are located in Tampa Florida. We were able to purchase these units for an average of 17,000 per unit, which is far below current comparable prices per unit. This project has a great mix of 3 bedroom, 2 bedroom and 1 bedroom apartment units. Since purchasing this project in December of 2010, we’ve been very pleased results that we are experiencing already!
The Tampa market is very similar to the St. Petersburg market, however this market has even more attractive occupancy rates, lower construction of new units and higher rents. As home ownership rates start to drop to historic all time lows as well causing rent demand to continue to increase. The occupancy rate in the immediate area is in the mid to high 90% range so we will be able to dramatically raise the NOI and the properties value.
We expect that the project will take 8 months to complete renovations and to achieve full occupancy. As with our other projects, we will refinance the property to 80% LTV with long term financing, allowing for re-deployment or return of capital to our investors. Our investors love that they can have the majority of their capital returned while still participating in healthy cash flow and tremendous equity gains. We expect that the property will support a sales price of 15,000,000 to 16,000,000 at an 8% cap rate, and we plan to sell the property in 3 to 5 years.