Holliday Fenoglio Fowler, L.P., (HFF), on behalf of the owner, is marketing for sale a single-family rental (SFR) portfolio totaling 18 houses that are fully occupied and average 1,243 square feet. The assets are located in seven unique zip codes in the Tampa Bay area. Unlike other asset classes, SFR portfolios provide investors flexibility through multiple investment and exit strategies. Many economic forces also point to SFR as a strong investment opportunity, and there is a promising future with occupancy nationally currently at 93 percent and rising steadily.
Tampa Bay Single-Family Rental Properties for Sale Investment Highlights
- Tight Supply and High Demand in the Market: One of the hottest housing markets, Tampa Bay had the nation’s fourth-highest gain from migration, adding 58,000 new residents in 2016. The median price for single-family homes rose 12.5 percent year-over-year due to tight inventory, high demand and increasing population growth. The rapidly increasing cost of home buying has pushed potential buyers toward renting. Due to the tight market, average monthly rent is expected to increase by 1.9 percent over the next 12 months, from $1,347 to $1,373.
- Tampa Bay Is Minutes from Top Employment Centers: Tampa Bay is conveniently close to four area employment centers: Downtown Tampa hosts 66,500 employees, which is 20 to 30 minutes from Tampa Bay; Westshore Business district, with its 94,000 employees, is 20 minutes away; Gateway Business Center, which is home to 60,000 employees, is 10 minutes away; and Downtown St. Petersburg is about 15 minutes away and has 30,000 employees. Tampa Bay is among the fastest-growing job markets in the U.S. at 2.57 percent growth, far outpacing the national average of 1.45 percent.
- Institutional Quality and Geographically Centered: All assets have three or more bedrooms and were completed between 1951 and 1971. In addition to proximity to major employment centers, all assets are conveniently located near major retail centers. The concentration of homes provides management efficiency, a similar rental pool and increased profits due to the limited supply in the market. Additionally, the assets are located in the top emerging destination to live, work and play in Florida and are situated in Pinellas County, the most densely populated county in the state of Florida.
- Stronger Metrics than Multi-Housing: The SFR rent premium is 29.3 percent to multifamily as of year-to-date. SFR values are 11 percent below peak pricing, while multifamily values are 38 percent above. The market in Tampa Bay consists of many families and millennials, who require more space. SFR is a better value averaging $0.74 per square foot versus apartments averaging $1.14 per square foot.