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Atlanta investor spends big on CitiLakes, tops busy year in apartment sales

CitiLakes Lux Apartments, located at 12051 S. International Dr., was built in 2014.
CitiLakes Lux Apartments, located at 12051 S. International Dr., was built in 2014. (Orange County Property Appraiser)

Atlanta-based Preferred Apartment Communities bought the 346-unit CitiLakes Apartments on S. International Drive for $63.35 million last week. At $183,092 per unit, it's the highest price paid this year for multi-family housing in Greater Orlando.

Columbus, Ga.-based Flournoy Development built the CitiLakes apartments at 12051 International Dr. in 2014. PAC, which owns or operates apartment communities in 20 cities, including three in Florida, is entering the Orlando market with its latest acquisition.

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PAC bought CitiLakes through a wholly-owned subsidiary and financed the acquisition utilizing a first mortgage loan of $44.45 million from KeyBank National Association. The loan bears interest at a floating rate equal to 30-Day LIBOR plus 2.17 percent per annum, or currently approximately 2.37 percent, matures April 1, 2023, and amortizes based on a 30-year schedule, according to the company. 

Calls to PAC for further comment on the acquisition were not returned Tuesday.

Based on price per unit, the CitiLakes sale tops notable recent apartment community sales like Unicorp's Casa Mirella in Windermere, which sold in early August for just over $181,000 per unit, and Victoria Lakes Apartments near Waterford Lakes Town Center, which sold for $138,000 per unit on Aug. 13.

In the largest multi-family property sale this year in Orlando, an affiliate of Inland Group paid $72.5 million in late August for Retreat at Orlando, a gated subdivision on E. Colonial Drive with more than 200 cottage-style rental homes for college students. When broken down among the 894 leasable bedrooms, it reflects a price of $81,096 per leasable unit.

Greater Orlando's multi-family housing market is booming with new development and existing property sales through the first eight months of this year, and national market research indicates the segment's growth won't slow anytime soon.

Average rent in 100 markets surveyed during the second quarter rose 6.2 percent, to $1,138 from $1,071 earlier this year, according to Yardi Matrix.

Researchers behind the Summer 2015 edition of Yardi Matrix National Outlook conclude that apartment demand will continue to grow above-trend for a few more years, driven by the movement of Baby Boomers into urban apartments, and the millennial generation's extended stay in the rental market.

Have a tip about Central Florida development? Contact me at bmoser@growthspotter.com, (407) 420-5685 or @bobmoser333. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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