Tampa Multifamily Investment Report

The Tampa Bay area is widely considered one of the most desirable and business-friendly regions in the country. Its established and growing economy contributes to Tampa Bay’s active multifamily rental market. From 2015 to 2019, the Tampa Bay market added 26,062 new units—more than half of the units in a nine county region, according to building permit data collected by real estate researcher CoStar Group.[i]  With strong economic fundamentals, sustained employment growth and population in-migration, Tampa Bay continues to provide excellent opportunities in the multifamily sector.

Tampa Metro Population & Employment Metrics
Tampa is the 3^rd-largest city in Florida, after Miami and Jacksonville, and the 53rd-largest city in the U.S. The Tampa MSA consists of Tampa, St. Petersburg, and Clearwater. Nearly 400,000 people live in the City of Tampa, and there are more than 3 million residents in the Tampa Bay/Hillsborough County metropolitan area. According to the Tampa Bay Economic Development Council, Tampa is projected to grow 3.3% annually over the next few years, and more than 126,000 new residents are forecast to move to the metropolitan area by 2024.[ii] The Tampa Bay area’s affordable cost of living, low tax environment with zero state income tax, excellent year-round weather and waterfront locations are attracting people and businesses to the region in record numbers.
Tampa’s vibrant economy is supported by a highly talented labor force in sectors that include healthcare, financial services, manufacturing, military, and technology. The city is home to the regional offices of a number of major corporations, including an emerging tech scene that includes Tampa Bay WaVE, Embarc Collective and TEC Garage. The headquarters of a growing number of Fortune 500 companies are based in Tampa, including Raymond James Financial, Tech Data, Jabil Circuit, Publix, Qurate, and Mosaic. Johnson & Johnson’s corporate services headquarters is based in Tampa, and global law firm Baker McKenzie’s new business services centers is located there as well. MacDill Air Force Base employs 22,700 and is the headquarters of CENTCOM and SOCOM.4. (JLL)
Data from the Bureau of Labor Statistics indicates that Tampa MSA employment has experienced a growth of 13.8% over the last five years through February 2020, and the unemployment rate of 6.8% for August 2020 is below both the Florida rate of 7.4% and the nation rate of 8.4%.[iii]

Multifamily Market
The Tampa/St Petersburg, Florida multifamily market is considered #4 in the nation for apartment building investments, according to Multifamily.loans.[iv]  The ranking is due to several favorable factors, including employment growth, rent growth, vacancy rates, and construction of new units. Additionally, CoStar reported that Tampa topped $3.6 billion in sales during 2019, making it the first multifamily market in Florida to top $3 billion. And Mashvisor noted that more than half of the population – 53% – rent instead of own a home.[v]  Furthermore, the annual PwC Emerging Trends in Real Estate: United States and Canada 2020 report ranks the Tampa-St. Petersburg real estate market at position #11 among the 80 surveyed markets. [vi]

Resilience of Tampa Apartment Fundamentals
YardiMatrix reports that Tampa rents rose 0.1% to $1,280 on a trailing three-month basis through April, while the national rate remained flat. Across the metro area, Tampa areas continued to command the highest rates. Hyde Park/Davis Islands was the only submarket where average rents surpassed the $2,000 mark as of April. Despite COVID-19’s impact on the overall economy, YardiMatrix still projects that the Tampa MSA will see multifamily rent growth and expects the average rent to rise 2.6% in 2020.

The Opportunity
Lloyd Jones, LLC has extensive experience an investor, owner, and manager in the Florida multifamily market. We have worked with investors to find the right multifamily property to generate the best possible returns for four decades, through numerous economic cycles. If you are looking to capitalize on multifamily opportunities in the Tampa market, please let us know. To learn more, visit https://www.ljasl.wpengine.com/

___

i.  https://www.businessobserverfl.com/article/tampa-bay-apartments-growth-jobs-in-migration-occupancy-rental-rates-brad-capas-cushman-and-wakefield-brian-alford-costar-group-arturo-pena-related-group
ii.  https://tampabayedc.com/wp-content/uploads/2019/07/2019-2024-Hillsborough-County-Population-Growth.pdf
iii.  https://www.bls.gov/eag/eag.fl_tampa_msa.htm#eag_fl_tampa_msa1.f.1
iv.  https://multifamilyfirm.com/tampa-multifamily-real-estate-market/
v.  https://www.mashvisor.com/invest/tampa-real-estate-market-report/
vi.  https://www.pwc.com/us/en/industries/asset-wealth-management/real-estate/emerging-trends-in-real-estate.html

MIAMI – Lloyd Jones, a real estate investment firm based in Miami, has recently acquired a 292-unit apartment community, Avisa Lakes Apartments. Conveniently located in East Orlando, Avisa Lakes is the third property Lloyd Jones owns and operates in the area.
Built in the mid-1980s, the property features an all-encompassing amenity package including a newly renovated fitness center, resident game room, outdoor summer kitchen, sports court, and two pet parks. Additionally, it is walking distance to AdventHealth East Orlando, a 295-bed facility that was ranked the number one hospital in Florida in 2019.

“The explosive economic growth in the area indicates a strong demand for multifamily properties,” explains Christopher Finlay, CEO/Chairman of Lloyd Jones. “We are thrilled to further expand the firm’s portfolio to support nearby major employment centers including Downtown Orlando, Winter Park, the airport, and various theme parks,” he continues. According to the U.S. Census Bureau, Orlando continues to be one of the fastest-growing cities in the country, welcoming over 60,000 new residents in the past two years.

ABOUT LLOYD JONES
Lloyd Jones, LLC is a real estate investment and development firm with 40 years in the industry under the continuous direction of Chairman/CEO, Christopher Finlay. Based in Miami, the firm has divisions in multifamily investment, development, management, and senior living. Its investment partners include institutions, private investors, and its own principals.
For more information about Lloyd Jones, visit www.LloydJonesLLC.com

MIAMI, FL — Lloyd Jones, a multifamily investment firm based in Miami, has purchased the luxury Pembroke Pines property, Ventura Pointe.

The 206-unit apartment community, built in 2018, has a state-of-the-art gym, clubhouse, pool, pet park, and outdoor recreation area. Furthermore, it is adjacent to the 301-bed Memorial Hospital Pembroke and has excellent access to nearby retail and entertainment.

Christopher Finlay, CEO/Chairman of Lloyd Jones, says he is thrilled to expand the firm’s footprint in South Florida, a region that has seen explosive job and population growth in the past few years. “I am excited to grow our South Florida portfolio. We have seen tremendous growth in the area, and we are happy to be able to offer a new, Class A property to support the growing population,” says Finlay.

ABOUT LLOYD JONES
Lloyd Jones, LLC is a real estate investment and development firm with 40 years in the industry under the continuous direction of Chairman/CEO, Christopher Finlay. Based in Miami, the firm has divisions in multifamily investment, development, management, and senior living. Its investment partners include institutions, private investors, and its own principals.

For more information about Lloyd Jones, visit www.LloydJonesLLC.com

The sunshine state’s population is soaring as more and more Americans are migrating south. It may be the beautiful weather and landscape, the favorable taxes, or the growing job market, but this appears to be a trend that is here to stay.

According to the Demographic Estimating Conference, Florida’s population will surpass 22 million residents by 2022. Florida is already the nation’s third most populous state behind California and Texas. For many, this increased growth is exciting as it brings about opportunity for the state, but it begs the question if the current housing supply in Florida real estate can meet this increasing demand.
Forbes reports that from 2010-2016, on average there were 114,744 new households per year, but only 57,952 new housing units. With the surge of population growth that we are witnessing in 2019, this disparity will only increase. Given this lack of availability, now is the ideal time to invest in Florida real estate that is so sought after to meet the swelling demand.

New households, families in Florida FIGURE 4 FROM STALEY, MILLSAP, AND NASTASI (2019)

MIAMI, FL – Lloyd Jones, LLC, a Miami-based multifamily investment and development firm, has acquired a two-property work force housing portfolio in Daytona Beach, FL. The acquisition of the Daytona Beach Portfolio brings the firm’s total AUM to $487 million.
Berkadia Commercial Mortgage, LLC provided Freddie Mac-sponsored senior and mezzanine financing to Lloyd Jones in connection with the acquisition.

Chris Finlay, CEO of Lloyd Jones, says, “With this acquisition, we now have five properties in the Daytona market and look forward to continuing our value-add, workforce housing strategy, allowing residents access to reasonably priced housing in this vibrant community.”

Built in the mid-1980s, the Daytona Beach Portfolio consists of two adjacent properties totaling 384 units. Lloyd Jones plans to invest $2M in upgrades, while keeping rents affordable for middle-income families

Raul Ramirez, the company’s CFO, stated, “Our goal is to take these currently under-performing communities and through the right management and cost-effective upgrades, create a better community for our tenants.”

This is the first investment opportunity that Lloyd Jones is offering to private, accredited investors. Previously, the firm partnered only with institutional investors on its investments, which have yielded an average realized IRR of 32.09% for the past ten years. Finlay added “This will allow individuals to access investment opportunities typically reserved for large institutional “check writers,” for as little as $25,000 per investor, and to tap Lloyd Jones’ seasoned investment and property management teams which underwrote and will own and manage these properties.”

For more information, please email: investments@lloydjonesllc.com
 
About Lloyd Jones, LLC
Lloyd Jones, LLC, is a private-equity real estate firm that specializes in multifamily and senior housing.  With 37 years of experience in the real estate industry, the firm develops, acquires, improves, and operates multifamily and senior housing communities throughout Florida, Texas, and the Southeast.  The firm is based in Miami, Florida. Its partners include institutional investors, family offices, individual accredited investors, and its principals.