Channel district fractured condos sold to partnership with local ties
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Nov 18, 2015

Rental units in The Slade, a fractured condominium in downtown Tampa's Channel district, have a new owner.

A joint venture of Cardinal Point Management, based in St. Petersburg, and Boston-based Long Wharf Real Estate Partners LLC paid $40 million for the 214 rental units and approximately 11,500 square feet of retail space, Cardinal co-founder Greg Williams confirmed Wednesday.

The units will continue to be operated as apartments, Williams said. The remaining 80 units in the building are individually owned.

A team of brokers from HFF LP in Tampa, led by director Matt Mitchell, represented seller Crescent Heights in the deal. HFF also arranged debt and equity for the sale. The Tampa Bay Business Journal first reported the property was on the market in May.

At $186,000 per apartment, the price is less than some other Channel district properties fetched - Pierhouse sold for $214,000 per door in early 2014.

Built in 2009, The Slade is one of the older apartment properties in the Channel district and faces competition from several newcomers, including the SkyHouse, a 23-story tower that wrapped up construction this summer and is already for sale.

"We think it's a discount to replacement cost," Williams said, "and there's some complexity in the sense that we're a bulk condo buyer, and the discount is reflective of that."

ZRS Management will take over the leasing and management of the apartments, Williams said, while Cardinal Point will handle retail leasing.

"We think there's potential, as the area continues to develop and more and more people continue to move downtown, that hopefully this will become a vibrant retail district," Williams said.

Ashley Gurbal Kritzer is a reporter for the Tampa Bay Business Journal.