A major residential high-rise on downtown Tampa’s skyline has sold for an eye-popping price.
The Channel Club apartments at 1115 E Twiggs St. in the Channel District sold for $136 million on Nov. 16 to Arlington, Va. multifamily real estate investor and developer Snell Properties.
That’s not a record for a downtown Tampa residential complex in 2021; the Anchor Riverwalk apartments near the David A. Straz Jr. Center for the Performing Arts sold in August for $157 million. But the Channel Club does represent the highest price-per-unit sale in Southwest Florida this year, said Frank Carriera of real estate services firm CBRE, which brokered the sale.
“With as strong as the market’s been, I’m sure there will be another one that’ll be higher in the next two months,” Carriera said.
Built in 2019, the 22-story complex features 324 residences and sits atop a Publix grocery store, which was not part of the sale. It is just up the road from the Florida Aquarium, Port Tampa Bay and the $3.5 billion Water Street Tampa development, which this year opened two new residential high-rises of its own, Heron and Cora, and will open a third in early 2022.
“They had a very positive impact on multifamily in downtown Tampa,” Carriera said of the Water Street towers. “They’re the catalyst to the rise in rents in the downtown Tampa market. Their rents are truly at the top of the market at $4-plus a foot at this point, and all boats are rising with the tide. Every property, especially the high-rises, has higher rents, or has been able to push the rents more, since they opened up Heron and Cora.”
This is Snell’s second major investment in Florida this year. In April, the company paid $80 million for Arcos, a 228-unit building in downtown Sarasota.
“We are incredibly proud to add Channel Club to our portfolio,” Snell vice president Peter Colarulli said in a statement. “It’s a fantastic time to invest in Tampa. We have been impressed by Tampa’s economic strength, quality of life, and burgeoning downtown as we continue to expand in the Southeast.”
Carriera said downtown’s “unprecedented growth” has fueled the demand for housing throughout 2021.
“There’s been a shortage of rental units in the downtown core for many years,” he said. “Between Amalie Arena on the south end and Tampa Heights and Armature Works on the north end, and everything in between, the city’s really been activated over the last decade, and really over the last four or five years. That’s caused a lot of people to want to live in downtown, where historically, there wasn’t a whole lot going on.”