New York-based Bluerock Real Estate has added to its apartment inventory in Kissimmee’s tourist corridor, paying $67 million this week for the 300-unit Integra Sunrise Parc, the first multifamily community built in Sunrise City.
Chris Fiscelli, Bluerock’s director of investment research, told GrowthSpotter the firm continues to bank on Orlando’s strong economy and job growth. The firm currently owns 3,500 rental units in Greater Orlando across its various portfolios. They like Sunrise City because of its proximity to retail and access to major roadways, like Osceola Parkway.
“The main drivers are the Orlando market, we like the apartment sector. There’s tremendous demand from Millennials, and we think that will continue because of population and job growth,” Fiscelli said. “We think there’s a lot of growth trending in the direction of South Orlando, and this property has very lux amenities."
The complex features luxury upgrades, such as kitchen islands with granite counters, built-in computer niches, a zero-entry saltwater pool with a wifi-cabana bar, valet trash pick-up and a dog park. The sale price breaks down to $223,333 per unit.
Jay Ballard, Ken Delvillar, Michael Mulkern and Robert Given of Cushman & Wakefield’s Florida Multifamily Team represented a development partnership of Panther Residential Management
Fiscelli said the purchasing entity, BR Sunrise Parc DST, is a trust is designed to sell shares to individual investors who are looking to place funds in a 1031 Exchange. The minimum investment is $100,000.
Bluerock used the same funding mechanism in 2019 when it purchased two Class A apartment communities in the ChampionsGate submarket for a combined $124 million. Bluerock Real Estate ended the fiscal year with $210 million in revenue, representing a 13.7% growth year over year.
Sunrise Parc was built by Integra Land Company and was the first multifamily complex in Sunrise City. Integra paid $4.85 million in 2017 for 17 acres. Last year the Lake Mary developer exercised its option to buy another 41 acres in the community for $12.95 million for two more potential phases.
Two other developers are building new Class A communities in Sunrise City this year. The three new projects will deliver more than 1,100 Class A rental units to Sunrise City over the next 12 months.
“We know that competition exists and there’s more on the way, but we think it will be absorbed,” Fiscelli said. “Those are typical characteristics of an emerging corridor.”
Orlando’s Intram Investments, master developer of the 238-acre mixed-use community on S.R. 535/Vineland Road, is adding new restaurants and retailers to the Publix-anchored shopping center. The first phase also included department stores TJ Maxx and Ross.