New York-based Bluerock Real Estate paid $67.5 million last week to acquire the Douglas Grand at Westside, a new Class A apartment complex just a mile from one of its other properties in the Four Corners submarket.
"We like Orlando a lot because of the rapid job growth and population growth," Bluerock Operations Manager Chris Fiscelli told GrowthSpotter. "We own a similar property -- The Landings at Four Corners -- that's about a mile away, and it's performing extremely well. So we feel really good about the Four Corners submarket."
The Douglas Grand, which is at the intersection of U.S. 192 and Westside Boulevard, has 336 units and was 94 percent leased at the time of the sale.
Fiscelli said Bluerock acquired the one-year-old asset in an off-market transaction from the original developer, Douglas Partners. Bluerock has renamed the community Grand at Westside and installed Bell Partners as its property manager.
"This property wasn't even on the market yet," Fiscelli said. "The developer was stabilizing the property and putting feelers out. It's a new Class A property with all the modern amenities we look for. When we do these for 1031 Exchange investors, we look for newer ones."
Bluerock sourced a $41.6 million balloon mortgage from Keybank National.
Fiscelli said the purchasing entity, BR Grand at Westside DST, is a trust is designed to sell shares to individual investors who are looking to place funds in a 1031 Exchange. The minimum investment is $100,000.
Bluerock owns office, multifamily, retail and development projects across the country. The firm paid $40 million last summer for Sonoma Pointe apartments in Kissimmee's Loop/Tupperware submarket.
That transaction was followed by three more multifamily acquisitions in Orange County in September and November, totaling $240.6 million.
Scott Ramey, Orlando office director of multifamily housing brokerage AMA/Newmark said the job growth at Disney parks and in the medical sector have added demand for new multifamily product in Kissimmee and Four Corners.
"Kissimmee is one of the fastest growing areas in all of Central Florida, which is continuing to attract a lot of attention from apartment owners across the country," Ramey said. "Historically, there has been very limited apartment development in this submarket relative to other parts of Orlando."