Tampa-based multifamily owner-operator Robbins Electra paid $26.2 million on Wednesday for the 296-unit Landmark at Lake Ellenor apartments, it's eighth asset in the Greater Orlando market, and will invest another $2.2 million in renovations, the company's CEO told GrowthSpotter.
Located at 2100 W. Oak Ridge Road near the intersection with S. Texas Avenue, the 27.14-acre property features three-story buildings built in 1973 with one-, two- and three-bedroom units that draw an average monthly rent of $900. The purchase price broke down as $88,513 per unit.
The property will be rebranded as Enclave at Lake Ellenor, and Robbins Electra will invest $7,400 per unit to fully upgrade all unit interiors, and amenities to include a summer kitchen, pool furniture, dog park and new landscaping.
"This asset was previously owned by (myself) with a Canadian REIT that subsequently went into the Landmark Apartment Trust REIT," CEO Joe Lubeck said via e-mail on Friday. "Once the REIT was sold to Milestone/Starwood, the Canadian partner listed it and reached out to let us know it was coming to market. We were the most advantaged buyer and were able to move quickly with aggressive terms, since we already knew the history of the asset and all of the value add that had been previously done."
The Lake Ellenor property was 95 percent occupied at time of purchase, the company said. It includes a 24-hour fitness center, business center and two swimming pools.
The seller was an affiliate of Timbercreek U.S. Multi-Residential Opportunity Fund #1, formed by Timbercreek Asset Management out of Ontario, which previously paid $18.5 million in November 2013. Jay Ballard and Ken Delvillar of Cushman & Wakefield's Orlando capital markets multifamily advisory group represented the seller.
The property was formerly managed by BH Management, but will be taken over this week by Robbins Electra's internal management division.
Robbins Electra doesn't have any other Orlando-area properites in its acquisition pipeline at the moment, but favors the market for its expansion, Lubeck said.
"Orlando is highly sought after, it's very difficult to find deals that work and takes creativity in finding ancillary income opportunities, as well as creative financing structures," he said. "I anticipate we will add more Orlando into the portfolio this year, as we did take gains on a couple of our Orlando assets but love the market and demographics occurring as the city builds out."
Robbins Electra was formed in early November through a merger of two multifamily owner-operators, Electra America and Robbins Property Associates.
The company has multiple strategic institutional investment partners, private investors and funds that provide capital for its acquisitions, Lubeck said.
The new company now owns and operates a $2 billion multifamily portfolio encompassing more than 21,000 apartment units in 66 properties spread across Florida, Texas, Georgia, North Carolina, Virginia and Maryland.
Robbins Electra now owns and operates eight properties in Greater Orlando totaling 2,256 apartments. It has acquired 35 properties totaling more than $1 billion in the past 12 months, eight of which have been in North or Central Florida.