Westchase apartment complex fetches more than $52 million

A Colorado investment company has paid $52.75 million for Viera at Westchase, an apartment complex on West Hillsborough Avenue.
Forum Real Estate closed on the property March 24, according to a Hillsborough County deed filed Friday. The seller, Nashville-based Covenant Capital Group, paid $39.25 million for the complex in early 2012.

The 390-unit Viera at Westchase, which includes a 7,000-square-foot clubhouse, was built in 1999. The sale breaks down to more than $135,000 per apartment — high for an older suburban complex. The price is above replacement cost, or what it would cost to build the community today.

When commercial properties sell above replacement cost, it signals a strong market and could prompt more activity — seeing that kind of profit is what entices other investors and developers.

The pricing indicates that the buyer sees continued strong demand for multifamily rental properties. A local developer, Richard S. Giunta, recently told theTampa Bay Business Journal that the demand for his new suburban apartment development in Citrus Park came as a surprise even to him.

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