Aventura-based multifamily investor pays $68.5M to enter Clermont market

GrowthSpotter contributor

An Aventura-based multifamily investor paid $68.5 million last week for its fourth property in Greater Orlando, buying a new complex in Clermont with its sights set on more core-plus properties in the region.

An affiliate of Advenir LLC bought the year-old, 328-unit Veve at Castle Hill apartments from affiliates of the project’s two development partners, real estate investment firm Real Capital Solutions on June 24 and local developer Quivet Creek Development LLC on June 25, per Lake County records. 

Located at 13600 Hartle Groves Place near the southwest intersection of S.R. 50 and C.R. 455, the property was rebranded this week as Advenir at Castle Hill.

RCS’ affiliate sold its stake for $51.2 million and Quivet Creek Development sold its part for $17.3 million, per separate deeds recorded, amounting to $208,841 per unit. 

Completed in 2017, the complex contains one-, two- and three-bedroom units averaging 1,028 square feet, according to RCS’ website. Amenities include a resort-style salt water pool, 2,000-square-foot fitness center, gated entry, verandah with fireplace, fire pits, game and massage rooms. RCS and Quivet Creek started construction after buying 25.3 vacant acres for $4.4 million in January 2016.

“My wife was from Clermont, and we’ve watched it grow,” Tom Lawler, manager at Quivet Creek Development, told GrowthSpotter. “We felt the critical mass was there. At the time we came out there (in 2016) there was not a lot of competition for multifamily. I thought this site was better located for people who work in downtown Orlando — only 25 minutes, and there was sufficient growth and amenities. Once we reached stabilization, we put it on the market.” 

JBM Institutional Multifamily Advisors Chairman and CEO Jamie May and President and Co-Founder Eddie Yang brokered the transaction on behalf of the buyer and sellers, according to Lawler and Todd Linden, chief investment officer at Advenir.

“The asset was exclusively marketed by JBM,” Linden said via email. “We have been active buyers in the Central Florida market and have transacted several times with JBM as the listing broker.” 

Linden said Advenir's motivations to buy were northwest Orlando’s high growth market with quality schools, strong demographics, limited new multifamily supply and convenient access to all major employment centers.

Since the apartment complex is brand new no value-add improvements are needed, but Linden said Advenir is searching for more assets in the area.

“Advenir is an extremely active multifamily buyer,” he said. ”We continue to search for core-plus and value-add opportunities throughout the Orlando MSA.”

The fundamentals in Central Florida are among the strongest in the country, which is attracting many new investors to the market, said ARA Newmark’s Orlando office director Scott Ramey, who was not involved in the transaction.

“Orlando has consistently been in the top five markets in the nation for employment growth the last few years and we are now the No. 1 market in the country for rent growth,” Ramey said via email. “Over the last 12 months alone, rents have increased by over 6 percent, which is more than double the national average, and Orlando is projected to continue to outperform the rest of the country over the next few years.”

Secondary submarkets like Clermont are becoming more attractive to investors due to their ability to draw off the larger job centers while having less competing supply compared to other areas of Orlando, Ramey said.

Advenir acquires and operates multifamily rental communities throughout the U.S. on behalf of high net worth and institutional investors. Its current portfolio includes over 13,000 units valued at more than $2.3 billion, according to a company bio supplied by Linden.

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