A New York buyer has acquired a hotel-condo resort in Ruskin with plans to transform the property into a top-tier apartment building.

ESG Kullen paid $22 million for the 154-unit Harborside Suites, Miami-based GLT Group Brokerage said Tuesday. GLT’s Sean Shahar A. Ziv represented the seller, California-based Carter Hospitality Group, in the off-market transaction.

The purchase price breaks down to $142,857 per unit. Granite Point Mortgage Trust Inc. provided a $20.6 million mortgage, according to Hillsborough County property records.

The plans to transform the resort into a rental property speak to the demand for housing in the Tampa Bay area. While the novel coronavirus pandemic briefly paused activity in the apartment sector, multifamily investors and developers were pursuing deals again by late 2020. A garden-style apartment property in Riverview recently sold for a record price for that property category.

“The Tampa Bay area is becoming one of the strongest housing markets in the nation. We anticipate the trend to increase as more people move to Florida,” Ziv said in a statement.

Harborside Suites was built as a hotel-condo in 2007, according to property records, and Carter bought the property out of foreclosure in 2012. It has 154 units — studio, one-, two- and three-bedroom apartments with kitchens in three connected buildings — and the property amenities include three heated outdoor pools, two Jacuzzis, two fitness centers and six sports courts.

A New York multifamily investment company plans to renovate Harborside Suites in Ruskin.

Tampa Bay is about to get more apartments, though this time they aren’t being built from scratch.

Harborside Suites at Little Harbor in Ruskin, a waterfront hotel along Tampa Bay, was purchased late last month by New York investment company ESG Kullen, according to Berkadia, the mortgage broker that helped arrange the financing.

ESG Kullen’s loan amount was $20.6 million, Berkadia said. According to Hillsborough property appraiser records, the sale price for the hotel, which also contains condos, was about $20.2 million.

Specifically, the company bought 155 of the hotel’s 158 units — the final three are privately owned condos, according to Berkadia managing director Christopher Apone.

Now ESG Kullen will begin renovations to convert the property into apartments. Those will include an updated gym, paddleboards and kayaks, plus changes to the clubhouse, pool, lobby and hallways. The hotel, which was built in 2007, contains three buildings with a mix of studios, one-, two- and three-bedroom units, according to a news release. It also has access to a private beach, marina, fishing pier, three heated pools and a hot tub, plus tennis and volleyball courts.

Apone said that the conversion represents “a prime opportunity” in “a growing area with limited supply” and a high demand for rental housing.

Renovations are scheduled to begin immediately and apartments will likely be available for rent within the next three months, he said.

TAMPA, FL – Berkadia announces it has arranged the sale and financing of Grand Pavilion, a 264-unit garden-style multifamily community located in Tampa. Senior Managing Director Cole Whitaker and Managing Director Jason Stanton of Berkadia’s Tampa and Orlando offices listed the property on behalf of the seller, ESG Kullen. Berkadia worked in conjunction on transaction with BlueGate Partners, LLC out of New York, represented by Mark DeLillo and Craig Callaway.

Senior Managing Director Mitch Sinberg and Associate Director Matt Robbins of Berkadia’s Boca Raton office originated $24.4 million in financing via Freddie Mac on behalf of the buyer, Praxis Capital, which acquired the property for $32.77 million.  The 10-year, floating-rate loan offered an attractive rate and five years interest only.

“This property recently received $3 million in upgrades and is well positioned to compete with similar vintage product in this submarket with modest improvements to the unit interiors,” said Stanton.

Located at 3110 Grand Pavilion Drive, Grand Pavilion was built in 1984 and offers a mix of one- and two-bedroom units ranging in size from 540 square feet to 873 square feet. Apartments feature new carpet and plank flooring, a screened in patio or balcony, walk-in closets, and in some units, kitchens have been updated with new appliances, hardware and cabinetry. Community amenities include a new state-of-the-art fitness center, swimming pool with sundeck, outdoor picnic/grill area, tot lot/playground, bark park, clubhouse lounge, game room, and package receiving area.

The property is ideally located in Northeast Tampa, less than five minutes from the University of South Florida, Busch Gardens Tampa Bay and AdventHealth Tampa, and 20 minutes from downtown Tampa.

About Berkadia: Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com