Miami-based Lloyd Jones Capital paid a combined $24.6 million last Thursday for its first two Orlando apartment communities, and is actively seeking more older properties in the area that offer strong value-add potential, the company's director told GrowthSpotter.
With a shared address of 5975 Curry Ford Road, the Pendelton Park Apartment Villas and Carlyle Court Apartment Homes lie southeast of Orlando Executive Airport, near the Engelwood Park neighborhood. The two properties offer a combined 310 units on a total of 16.89 acres, reflecting a price per unit of roughly $79,350.
As an investor in multi-family real estate with about 4,000 units across Texas, South Carolina and Florida, Lloyd Jones Capital was drawn to Orlando because of its steady job growth in recent years and the average apartment rent increases that have followed, said Stephen Selby, company director.
"We've looked at quite a few properties in Orlando, and located these assets where the previous owner started some nice upgrades," he said on Monday. "We decided this was a spot we liked for continued growth opportunity."
Affilate property manager Finlay Management, Inc., has taken over both communities, and will see through the staggered renovation of unit interiors as tenants move in and out. Selby said those upgrades would be made over the next two years, and estimated investment of a few thousand dollars per unit.
The company paid $6.02 million for the Carlyle Court apartments via affiliate Carlyle Court LLC, and paid $18.58 million for the Pendelton Park apartments via Pendelton Park LLC.
The properties were sold by an affiliate of Aspen Square Management Inc. out of West Springfield, Massachusetts.
The buyer acquired a $15.3 million loan for Pendelton Park and a $4.9 million loan for Carlyle Court from Berkadia Commercial Mortgage. Cole Whitaker of Berkadia Real Estate Advisors represented the seller in the deal.
Looking ahead, Lloyd Jones Capital will actively pursue more acquisitions in Greater Orlando, with a focus on older properties built in the 1970s through early 1990s, generally classified as Class B or "workforce housing," Selby said.
"We like properties that are underperforming or maybe need a lot of cap-ex, with value add potential through renovation or better management to improve asset value," he said. "We'll look all over Greater Orlando, and prefer areas with a lot of jobs."