Tampa-based Blue Rock Premier Properties is actively hunting for value-add Class C apartment assets in Orlando to replenish its portfolio, after selling three local properties in the last two months, an acquisitions analyst with the company told GrowthSpotter.
“The market right now is getting harder to find those juicy deals where you can do a value-add play, and still have a low basis going in,” said Charles Faramo.
“Currently we’re looking at a portfolio deal that was taken out by Darron Kattan of Franklin Street in Tampa, repping a client with three properties in Orlando and one in Tampa. We put in an offer, not sure what will happen,” he continued. “It wasn’t the highest bid, but we’ve had luck in the past with our lower offer being chosen later after lead offers fall through. Our play is a strong reputation of lining up our equity and confirming it beforehand.”
Blue Rock Premier favors older properties built in the 1970s through 1990s, Class C communities they can bring up a level through better management and capital improvements. Their investors are typically private equity groups, opting to avoid institutional funds and the time horizons that can limit long-term ownership.
The sales in May and June of three Blue Rock Premier assets included the 288-unit Park at Sutton Place in Winter Park for $32.1 million, the 344-unit The Park at Cambridge in southeast Orlando for $30.1 million, and the 168-unit Park at Canterbury in Winter Park for $18.35 million.
“It was good timing with the market to make a profit, and with the loans expired on each there was no penalty upon sale,” Faramo added. “With the three properties we sold in Orlando, we’re definitely trying to get those more than 600 units back under our management.”
Like many multifamily investment groups, Blue Rock Premier is drawn to a majority of Greater Orlando’s submarkets. Favorites now are Winter Park, Conroy Road and Downtown Orlando, “with most interest in B or B-plus neighborhoods with assets in the C class,” he said.
Formed in January of this year, Blue Rock Premier Properties is a spin-off of sorts by multifamily investor Randy Ferrera from the company he formed seven years ago, Blue Rock Partners.
Ferrera and his new company acquired control and management of a $700 million Florida apartment portfolio from Blue Rock Partners, LLC. The company now owns 28 properties across the state, with eight in Greater Orlando totaling 1,728 units.
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