If you have been watching the Tampa Bay real estate market with an investor's eye, you already know that Davis Islands plays by different rules. Properties here don't just hold their value — they tend to hold the attention of exactly the kind of buyer who understands what a genuinely scarce address is worth. And right now, one of the most strategically positioned income properties in South Tampa has just come to market.
Unit 704 at The Adalia Bayfront. And if you haven't heard of it yet, that's exactly the point.
Davis Islands is a small, private island community just south of Downtown Tampa, connected to the mainland by two bridges and bordered on all sides by water. It has a yacht club, a dog beach, a village strip of local restaurants and shops, and a neighborhood personality that no amount of new development in the wider Tampa market has managed to replicate. Tampa General Hospital — one of Florida's top-rated medical facilities — sits at its northern tip. Water Street and the Riverwalk are five minutes by car.
For investors, Davis Islands represents something increasingly rare in Florida real estate: a location with genuine scarcity. The island is what it is. It cannot expand. And within it, The Adalia Bayfront is one of the most distinguished addresses — a ten-floor, 65-unit gated waterfront building with panoramic views of Hillsborough Bay, a private marina with boat slips and lifts up to 13,000 pounds (the only building in the vicinity with direct bay access), a renovated saltwater pool, fitness center, sauna, on-site management, and two reserved parking spaces per unit.
It is, in short, the kind of building that people don't leave.
The Adalia Bayfront permits only 6 of its 65 units to be leased at any given time. Unit 704 holds one of those approvals. That is not a minor administrative detail — it is a structural competitive advantage that is built into the asset itself. With rental supply deliberately capped at the association level, investor demand for these six units stays concentrated, rents stay firm, and the resale value of a lease-eligible unit carries a premium that standard condos in the building simply cannot command.
When a lease-eligible unit at The Adalia Bayfront changes hands, there is no guarantee the rental approval transfers to the next buyer automatically. That makes the opportunity to acquire one of these units — already leased, already income-producing — genuinely uncommon.
Unit 704 is currently leased to a qualified tenant, with annual rent escalations contractually embedded in the agreement. The lease runs through June 2027 — meaning an incoming buyer acquires not just a property but a defined income timeline, with a clear horizon and a market reset already written into the calendar.
From the day you close, rent arrives. No renovation required, no lease-up period, no first-month uncertainty. The return grows each year through built-in escalations, and when the lease expires in June 2027, the investor holds a premium waterfront asset in one of Tampa Bay's most sought-after zip codes — free to re-lease at current market rates, move in personally, or sell on their own terms.
Comparable units in the building are actively listing well above current contracted rent. That gap between today's lease rate and tomorrow's market rate is already built into the asset. It is your upside — and it does not require a single capital improvement to realize it.
This listing was designed with a specific kind of buyer in mind. If you are executing a 1031 exchange and need to place capital into a qualifying property quickly, this is a turnkey acquisition with an income stream that begins at closing — no construction timeline, no tenant search, no waiting. If you are an international or out-of-state investor looking for a professionally managed, low-touch waterfront hold in a market with a strong appreciation history, this is the kind of asset that earns its keep quietly and consistently. And if you are a high-net-worth buyer who wants a foothold on Davis Islands without the full commitment of primary residence, a leased investment property with a defined lease end date gives you the flexibility to reassess in 2027 with all options still open.
I work extensively with international buyers — many of them drawn to Tampa Bay precisely because of the combination of lifestyle quality, price point relative to comparable coastal markets, and the long-term trajectory of South Tampa in particular. Davis Islands waterfront properties, and lease-eligible condos within them especially, are exactly the kind of asset my global network asks about consistently. When one becomes available, the conversation moves quickly.
The Tampa Bay waterfront market has shown remarkable resilience over the past several years, and Davis Islands in particular has maintained its premium positioning even as broader market conditions have shifted. Inventory at The Adalia Bayfront is historically low. A lease-eligible unit — already tenanted, already escalating — is not something that comes to market on a predictable schedule. It comes when it comes, and then it's gone.
Opportunities like this don't sit. They transfer to the next person paying attention.
If you are that person, I would love to talk. Reach out directly at [email protected] or connect with me through 813.858.6267. I am happy to share the full investment brief, cap rate analysis, and arrange a private showing.
By Estella · Stella Sells Sunsets · Compass Real Estate, Davis Islands, Tampa FL, Investor real estate · Waterfront condos · South Tampa
