A Colorado-based hedge fund paid $2 million last week for a small apartment complex in Haines City with value-add potential.
Eastwood Apartments, a 42-unit affordable apartment property, is at the corner of Hinson Road and 22 Street, just north of Boone Middle School. The complex, built in 1978, had rural area rent restrictions that burned off in August 2018 and sold at 6.03% cap rate on current net income, according to Marcus & Millichap's Turchi Travis Team, which represented the seller and buyer in the deal.
Ray Turchi, first vice president investments, told GrowthSpotter the buyer plans to make significant investment in the property with the ultimate goal of bringing it up to market rates.
Wynkoop Homestead Fund V LLC, associated with Colorado-based Wynkoop Financial, purchased the asset. A separate Wynkoop fund divested of hundreds of single-family rental properties in Central Florida last December.
Wynkoop reported raising $2.5 million from 12 investors last week. The offering is still open, according to the SEC filing document.
The seller was a local investor with multiple affordable rental properties in the area.