A small private equity firm focused on Class B/C multifamily entered the Florida market this week via Orlando, paying $17.6 million for the 184-unit Cadence Crossings apartments on Curry Ford Road.
Known as Atlantic Multi Family with roots in Virginia, the group is now migrating its investment portfolio away from the northeast to focus its acquisition strategy on Texas and Florida, managing member Mahesh P. Desai told GrowthSpotter.
"This investment was driven by a geographic diversification strategy for our portfolio," said Desai, one of four managing members of the group who's now based in Parkland, near Coral Springs. "Florida and Texas are the two fastest growing states in the country, and rightfully so. We will focus on these two states going forward."
Located at 6203 Curry Ford Road in southeast Orlando near the Ventura Golf Course, the property lies on 12.89 acres with one-, two- and three-bedroom units built in 1973. The sale value breaks down as $95,652 per unit.
Desai described Cadence Crossings as "a true Class B property in a real B location, one of the better properties we've invested in."
The company will develop a renovation and upgrade budget in the coming months and seek subcontractors, though Desai said he could not forecast how much would be invested, or what aspects of the property would be improved.
Started in 2011, Atlantic Multi Family now owns 11 multifamily properties in three states: Virginia, Texas and Florida. Desai said the group isn't sitting on capital it feels compelled to place in another acquisition this year, but if he and fellow managers find a good deal they have a pool of investors to turn to.
Artcraft Property Management of Richmond, Virginia, was brought on since Monday to manage the Orlando property. The company was chosen because it manages Atlantic Multi Family's communities in Virginia.
The seller was Cadence Festival LLC (aka Alcurt Orlando III), affiliate of owner-operator Aspen Square Management in Massachusetts, which previously paid $7.4 million in May 2012.
The buyer sourced a $14 million Fannie Mae loan from Greystone Servicing Corp. out of Warrenton, Virginia.