UPDATED: September 20, 2016 11:54 AM — Atlanta-based Chance Partners, an investor in student housing and developer of urban infill multifamily and hotels, paid $17.5 million on Friday to enter the Orlando market via a 96-townhome community near UCF, and is actively seeking infill parcels and more student housing locally, a lead executive with the company told GrowthSpotter.
Located at 10200 University Blvd. west of UCF's main campus, The Quad was built in 1999 and has 96 four-bedroom townhomes geared toward college students.
The property was sold by an affiliate of Taurus Investment Group out of Maitland, which previously paid $15.17 million for it in March 2007. Taurus also sold a bank office building in Winter Park in late August for $15 million.
Founded in 2009, Chance Partners has been an active investor and developer for the past six years, focused on the Southeast region and student housing and hotels near large schools like Florida State, Georgia, Ole Miss and Alabama.
After acquiring student housing assets this year in Tuscaloosa, Savannah and now East Orlando, the company is focusing its growth on the I-4 corridor of Tampa, Orlando and Jacksonville, said Judd Bobilin, president and CEO.
"We think those markets offer better prospects than in the Atlanta area, which we are concerned will be overbuilt quickly," he said on Tuesday. "We have a plan to continue adding student housing properties to our portfolio, and would like to do between $75 million and $100 million of acquisitions in the next two years.
"This (UCF) property was marketed by Berkadia, and it's a townhome style which we're familiar with," Bobilin continued. "We'll hold this property for the next seven years and operate it professionally. We don't do heavy value add, more minor value add with interior updates, and some exterior painting."
Chance Partners utilizes two main sources of capital for its acquisitions and development. High net worth individuals are the primary, for which they target investments of up to $25 million, which equates to a $6 million to $8 million equity check, Bobilin said.
"We're focused on assets in the $15 million to $20 million range where value can be added, and are a bit too small for the institutional groups, but too big for the individual buyer that wants to come in," he said. "On larger investments we'd turn to our institutional lending sources."
Looking forward, the company is actively seeking infill development opportunities in Downtown Orlando or downtowns of other local cities, with one to six acres a focus for their multifamily, student housing and hotel projects, Bobilin said.
"We're also interested in additional opportunities to acquire student housing near UCF," he added.