Michigan-based real estate owner-operator McKinley paid $3.375 million within the past week to add three small apartment communities in Downtown Orlando to its portfolio, and will begin complete renovations of the properties immediately, the company's CEO told GrowthSpotter.
"Orlando is our favorite market in the country by far. I don't know anywhere else in the U.S. that has the positive job dynamics that Orlando has," said Albert M. Berriz, CEO of McKinley, which owns and operates apartment properties in 39 states, including 22 in Metro Orlando with 6,000 units overall.
"If you're going to invest anywhere in Florida the I-4 corridor from Orlando to Tampa is it, and Orlando is uniquely better than Tampa," he added.
The three properties acquired were in historic Delaney Park and the Lake Cherokee neighborhood downtown.
The company bought the 12-unit Becla Apartments on 636 Delaney Ave., now renamed Delaney Park Flats; the eight-unit Cherokee Village Apartments at 345 Ponce de Leon Place, renamed Lake Cherokee Flats; and the 12-unit Osceola Apartments at 521 S. Osceola Ave., renamed Osceola Flats.
All three communities will undergo extensive renovations, which includes gutting every apartment interior to install condo-grade finishes, and exterior renovations that will respect the historic preservation standards of downtown, Berriz said.
Amenities will be added to each property, including outdoor dining and cooking areas, fire pits, bike and scooter parking, hammocks and lake-view seating.
"The timeline is immediate, and we'll have this work done in a year," Berriz said. "We do a lot of historic renovations and comprehensive renovations. I can't estimate the (investment) value, but it will be significant."
McKinley has a stable of contractors in the area it has worked with in the past on Orlando property renovations, but is open to considering new ones that contact the company directly, Berriz said.
The PrivateBank provided a loan of $4.34 million to fund the acquisition and renovation of the properties, which McKinley is adding to its "McKinley City Beautiful" portfolio.