Tampa, Florida-based value-add investment firm ZMR Capital has made four acquisitions in its home market over the past five months, amassing a total of 1,567 units. The majority come from two properties ZMR acquired over the last month in off-market transactions — Reserve at Brandon, a 982-unit property in Brandon, Florida, and Preserve at Riverwalk, pictured above, a 300-unit property in Bradenton, Florida.
Reserve at Brandon, built in three stages between 1991 and 2002, is among the largest multifamily properties in the Tampa Bay area, according to a press release shared with Construction Dive. The 62-acre community — located within a half-mile of ZMR’s December acquisitions, Brandon Oaks and Palms at Paradise — will be rebranded as Skye Reserve.
Units range from one to three bedrooms and feature stainless steel appliances, walk-in closets and balconies and patios. ZMR intends to build on the property’s previous renovations with a full capital improvement program, including the addition of a washer and dryer in all units and new paint and landscaping in the common areas.
Zamir Kazi, founder and CEO of ZMR Capital, expects the Brandon submarket to continue to grow as “tremendously” as it has over the last five to ten years.
“You've got A+ retail, lots of great amenities, restaurants and shopping, and you're really close to getting in town and [to] the highway,” Kazi told Multifamily Dive. “You’ve got a lot of population growth, the demographics are strong and the income growth there is also strong as far as renter profile goes.”
Preserve at Riverwalk, built in 2018, is located near the Bradenton Riverwalk, a 2.5-mile network of riverfront walkways that lead to downtown Bradenton. ZMR Capital intends to enhance the unit interiors and common areas, starting with the pool deck, with the intent of ensuring it remains competitive with newer construction, according to a second release shared with Construction Dive.
Local activity
ZMR Capital currently owns more than 7,000 apartment units across Florida, Georgia and Texas. The company has two more deals in progress in Florida, one in Orlando and one in Fort Myers, and intends to acquire between $1 billion and $1.5 billion in new Florida assets over the next 12 months, according to Kazi.
Kazi credits the company’s local basis and knowledge for its ability to make deals in the Tampa market.
“We're able to keep our finger on the pulse on assets in real time and build great relationships with sellers and the brokers. And we've seen these deals, each and every one of them over the last 10 years and know the assets intimately,” he said.
The Tampa metropolitan area’s rents are among the fastest-growing in the nation, according to Yardi Matrix, with 23.8% rent growth YOY as of March 2022 — beaten only by two other Florida markets, Miami and Orlando. Given this rapid growth, many regions of the Sunshine State have become a highly competitive hotbed of multifamily acquisition activity, according to Kazi.
“All buyers, whether they're institutional or not, are really trying to get their foot in the door in Florida,” he said. “Florida, besides a couple of other markets, I think is the strongest market in the country in terms of rent growth, job growth, in-migration and population growth."
