Minnesota-based Dominium Inc., the nation's second-largest developer and manager of affordable housing, paid $9 million last week for a 144-unit apartment complex on Cinderlane Parkway just south of Orange Blossom Trail.
The company bought the 32-year-old complex under the affliate name Orlando Leased Housing Associates VI, LLLP, and received a $9.28 million mortgage from Privatebank & Trust Co.
Formerly known as Village at Rosemont Preserve, the property was quickly rebranded Aventura Apartments.
"We were very attracted to that property because we already own a 500-unit apartment complex across the street," said senior VP Brendt Rusten on Tuesday, referring to Nassau Bay, which the company acquired and renovated in 2013. He said that complex now has a waiting list of more than 100 prospective tenants.
"Things have really gotten a lot better in that area, and we think we helped move the needle," Rusten told GrowthSpotter. "So we really like that neighborhood."
Aventura is Dominium's first market-rate asset in the Orlando market, and it represents a new customer-base for the company -- renters who earn between 60 and 80 percent of the area's median income. In other words, people who need affordable rental housing but don't meet federal income restrictions.
"This is a market we're focusing on now," Rusten said. "The building we own a block away, we have to turn away 30 percent of applicants because by the time we get through with them they make too much money. Their housing choices are very limited."
Rusten said a two-bedroom apartment at Aventura will rent for around $900 a month. "It should be, in essence, a brand new unit inside," he said.
Dominium is spending $1 million dollars on renovation of all interior units as well as the grounds and amenities. The company already has received a notice to proceed on the construction improvements, which also includes a new fitness center.
Rusten said the renovations will include new kitchen cabinets, counters and appliances, new lighting packages, faucets, low-flow toilets and new flooring throughout.
"We're spending roughly $7,000 per unit," he said.
Dominium also will restore the original landscaping, buy new playground equipment and replace a tennis court with a large grilling and picnic area.
The complex last sold in December 2013 for $5.8 million.
This is Dominium's second multifamily acquisition this year in the Orlando market, and it's 22nd in Florida. The company manages 200 property sites in 23 states.
It acquired 2,943 affordable housing units in 2015 and surpassed that number this year in early September with over 3,000 units acquired -- reaching a milestone of 25,000 total units across its portfolio.
The company has set a goal to reach 40,000 units by 2025.