Target Information

Pointe at Carrollwood is a 224-unit value-add apartment community situated in the Carrollwood neighborhood of northwest Tampa, Florida. Acquired by Beacon Real Estate Group in March 2022, the property has since undergone significant capital improvements totaling over $3.6 million, enhancing its appeal and current occupancy rate of 95%. Originally built in 1984, it features one- and two-bedroom apartments ranging in size from 629 to 1,050 square feet, equipped with modern amenities such as stainless steel appliances and designer finishes.

Set against a backdrop of natural conservation, Pointe at Carrollwood offers residents a serene living environment with access to lush landscaping and scenic lake views. Community amenities include a swimming pool with grilling stations, a fitness center, a playground, and convenient on-call maintenance services, ensuring a desirable living experience for its occupants.

Industry Overview in Tampa

The multifamily real estate sector in Tampa has been thriving, with Carrollwood recognized as one of the city's most lucrative submarkets. Notably, Tampa's economic landscape is bolstered by its strategic location, proximity to downtown, major employment centers, and a vibrant community, all contributing to robust rent growth. The area's affluence and limited competition from new developments further enhance its attractiveness to investors.

In recent years, the region has witnessed a surge in demand for rental properties, driving a positive trend in occupancy rates and rental prices. Investors are increasingly targeting well-located multifamily assets in high-growth markets, making Tampa an appealing option due to its strong demographics and ongoing development initiatives.

With a growing population and a diverse economic base, Tampa is poised for continued growth in the multifamily sector. This environment presents significant opportunities for property owners and investors alike, as demand consistently outpaces supply in desirable neighborhoods.

Rationale Behind the Deal

The debt and equity recapitalization of Pointe at Carrollwood aligns with the strategic growth objectives of Beacon Real Estate Group. The substantial capital improvements made to the property positioned it ideally for sustained rental growth, particularly in a thriving market like Carrollwood. The recapitalization will enable the sponsor to pay off an existing acquisition loan while continuing its value-add renovation strategy to further enhance the appeal of the community.

As the Tampa rental market continues to strengthen, the balance of fixed-rate agency financing and preferred equity investment ensures that the sponsor has the necessary capital to maximize the property’s potential and secure its competitive stance in the marketplace.

Information About the Investor

Beacon Real Estate Group is a Miami-based firm recognized for its expertise in multifamily real estate investments. The company focuses on acquiring value-add properties across high-growth markets, implementing innovative renovation strategies that enhance value and resident satisfaction. Their proven track record in property management and strategic investments positions them as a significant player in the real estate landscape, particularly in the Tampa Bay area.

Supporting Beacon in this recapitalization, Atlantic Pacific Companies is a privately owned real estate firm with extensive experience across the acquisitions, development, and management of multifamily assets. Their commitment to providing structured capital solutions for well-located properties reflects their robust investment strategy targeting high-growth markets.

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In my expert opinion, the recapitalization of Pointe at Carrollwood presents a well-considered investment opportunity. With the property’s significant upgrades and high occupancy rates, Beacon Real Estate Group has effectively positioned itself to capitalize on the strong demand in the Carrollwood submarket. The combination of fixed-rate financing with preferred equity further mitigates risks associated with interest rate fluctuations, giving a solid financial footing to the investment.

Moreover, the continued growth prospects for the Tampa multifamily market make this a timely and strategic move. Carrollwood's established reputation for rent growth and its proximity to key amenities provide a competitive advantage that is hard to overlook, ensuring that resident demand will remain robust as the market evolves.

Overall, this deal not only strengthens Beacon’s portfolio but also reinforces the attractiveness of investing in the Tampa multifamily market. The decisiveness to implement a value-add strategy, along with the insights drawn from the current market dynamics, indicates that this investment is likely to yield positive returns in the foreseeable future.

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