A Los Angeles-based investment group has spent roughly $94 million over the past nine months on two large apartment developments in Waterford Lakes, and is on the hunt for more in that area to boost synergies, the company's general counsel told GrowthSpotter.
PRG Fund LP, which owns a portfolio of office buildings in Los Angeles County, began venturing into apartment building acquisitions within the past year.
The company made its second purchase in Greater Orlando on Aug. 13, with the 364-unit Victoria Place Apartments near Waterford Lakes Town Center for $50.13 million, or $138,000 per unit.
Located at 12612 Victoria Place Circle, just north of Waterford Lakes Town Center and south of East Orange Park, Victoria Place Apartments was built in 2002 and features 13 three-story buildings over 22 acres. Lincoln Property Company is the new management firm brought on to the property this week.
"If you had talked to me a year ago, I'd have said no way would we ever own apartments in Orlando," said Marc Nourafcham, general counsel with PRG Fund. "Nothing against it, but Orlando was just so far from our radar."
Nourafcham was in Lake County in mid-2014 after acquiring a veteran's hospital in The Villages, had a day free in his agenda and contacted a commercial broker to show him some Orlando properties.
He was quickly won over with Waterford Lakes, particularly the proximity of so many apartment buildings to the community's town center. PRG saw an opportunity in December 2014, and pounced on its first local property, the 316-unit Rexford at Waterford Lakes for just under $44 million, which is also managed by Lincoln Property Company.
The newly-acquired Victoria Place is directly west of Rexford at Waterford Lakes. The neighboring properties will share payroll for the same management firm and gain synergies on insurance, a factor that helped PRG ultimately win an online auction for Victoria Place over as many as 10 other bidders.
Nourafcham said his company is now actively looking for more acquisition opportunities, but solely in Waterford Lakes, where they can build on the property management synergies being developed.
PRG is beginning a remodel at the Rexford that Nourafcham says will set it apart in Waterford Lakes, and is planning unit remodels and outdoor common space upgrades at Victoria Place over the next year. Up to $12,000 will be invested per unit, while a new dog park will be built, and the clubhouse, pool and indoor basketball court will be remodeled.
PRG Fund has yet to hire a general contractor or other service providers for remodeling work on the two properties.