Joint venture partnership with Park Partners Residential and Independencia Asset Management just dropped $77.75 million for a vacant 280-unit multifamily community in Orlando’s tourism corridor.
The JV acquired The Commons multifamily property at 8050 Gables Commons Dr. for $277,678.5 per apartment. According to a news release about the deal, the partners intend to use a $58.5 million loan from American Real Estate Capital to fully renovate the property.
This is the first Orlando asset for PPR, a joint venture formed in 2015 between managers at Rosemurgy Properties and Giles Capital Group. Since then, the partners have acquired and developed over $300 million in multifamily real estate, according to its website.
Jubeen Vaghefi, Denny St. Romain and Charles Crapse of Cushman Wakefield brokered the deal.
Records show Commons Owner LLC, the seller, bought the community in 2017 for $39.3 million. The LLC is tied to real estate funds managed by the investment firm Ares Management Corporation.
Walt Disney World housed members of its programs on the property, including members of its international college program, cultural representative program, and international exchange program. The master lease with Disney will be terminated upon closing, according to online marketing material.
The Commons multifamily community was built on about 20 acres in 1998, north Little Lake Bryan. It is comprised of 29, 2 and 3-story residential buildings and consists of a swimming pool, fitness center, conference center, lighted tennis court, lighted sand volleyball court and garages.
In the release, Rob Romagnoli, director of acquisitions and finance at Rosemurgy Properties, said the deal represented a “unique opportunity” to own a project in the Orlando market. “Our renovation program includes all 280 units and upgrading each amenity space to reposition The Commons as a property that accurately serves the needs of modern renters,” he said in a written statement.
The renovation project includes extensive upgrades to the pool, clubhouse and fitness areas along with the additions of a game room, co-working offices, and dog parks with dog washing stations. The company also wants to upgrade the property’s car care center and grilling areas.
By the end of the renovation, the fitness center should include a cardio gym with yoga and spinning areas, the release states.
The South Florida-based real estate company specializes in the acquisition and development of multifamily communities as well as asset and property management, leasing, construction and renovation.
One of its largest deals was the $230 million sale of The Residences at Uptown Boca last year. Giles and Rosemurgy, partnered with Brian Schmier of Schmier Property Group to complete the investment.
Earlier this month, the former living quarters of Walt Disney World cast members and service employees sold for $90 million nearby. Denver, Colorado-based real estate investment firm, Grand Peaks, was the buyer.
Michael Sommers, senior vice president at Grand Peaks, told GrowthSpotter the firm plans to update interiors and open the community to residents sometime this summer. The company has already renamed the rental property to Emerald Grove Apartments.
Have a tip about Central Florida development? Contact me at arabines@GrowthSpotter.com or (407) 491-3357, or tweet me at @amanda_rabines. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.
