A third-generation investor in local real estate spent more than $1.5 million last week on two value-add commercial properties in Downtown Orlando.
Brad Cowherd, principal of Florida Oranges Land Companyand owner/operator of Infusion Tea on College Park's Edgewater Drive, has continued on the path his father Philip T. Cowherd and grandfather established in 1958, whose portfolios are made up of primarily multifamily properties in the Parramore neighborhood of Downtown Orlando.
Brad Cowherd's latest is the 10-unit Annie Street Apartments at 117 Annie St. in Delaney Park, bought for $665,000 on Dec. 21 and recorded Wednesday in Orange County. Set on 0.37 acres northeast of Orlando Regional Medical Center, the seller was ANB Land LLC, managed by First Capital Property Group, which previously paid $90,000 in June 2013.
"We've generally looked for low-rise multifamily that may be in need of repairs for value-add potential, so the 10 units on Annie Street fit nicely with our profile," Cowherd said Thursday. "We'll be putting about $250,000 into interior and exterior renovations there. Average rents have been in the $500 range, but following renovations should be up near $800."
The property was only formally listed in November and drew more than 20 investor property tours and multiple offers within just a few weeks before selling, said Luke Wickman, senior vice president for multifamily with CBRE in Orlando, and listing agent on the property.
"It was a phenomenal location right across the street from Orlando Health. The hospital within walking distance and very close to the Central Business District and South Downtown made it attractive," he said.
Cowherd, his father and brother Clayton now own roughly 120 apartment units across a handful of properties in Greater Orlando, he said.
The other acquistion of $500,000 made on Dec. 20 was for a 6,950-square-foot, 54-year-old warehouse at 19 N. Westmoreland Dr.
The seller was the Goldfarb Family Partnership, managed by Garry Goldfarb and Iris R. Goldfarb of Belle Isle.
Cowherd and his family have acquired roughly 100,000 square feet of commercial properties in Downtown Orlando in recent years that are situated between the new soccer stadium and Camping World Stadium. They've repositioned most for entertainment and retail users like an MMA gym, and the Broken Strings Brewery.
Cowherd said his family generally self-manages its commercial properties, but is preparing to sign a management agreement with a local commercial real estate firm, which he declined to name.
Cowherd's LLC affiliate sourced a $1.4 million loan to help finance both acquisitions from Synder Brothers, Inc., one of the largest independent producers of natural gas in Pennsylvania.