UPDATED: AUGUST 21, 2018 3:42 PM — Virginia-based multifamily investor Chandler Residential paid $28.45 million on Aug. 16 for a 220-unit apartment complex in southeast Orlando, giving it two assets in Greater Orlando with more under watch.
Located at 3149 Landtree Place, the 14.2-acre Reserve at Conway apartments lie near the Bryn Mawr neighborhood, at the corner of Conway Road and Lake Margaret Drive.
Built in 1983, the property features 15 two-story apartment buildings in a garden-style layout, with amenities that include a swimming pool, fitness center, activity areas, outdoor kitchen and dog park.
"The Orlando market as a whole is very strong so we were looking to buy anywhere in the area," president Paul Jost told GrowthSpotter. "We liked this location on Conway, close to the airport and downtown. It's an established property where we can go in and do some more renovation to get some rent bumps through that."
This acquisition gives Chandler two apartment assets in Greater Orlando that it also manages, with the other being a 384-unit property in Kissimmee. The company recently sold one in Oviedo.
The seller was an affiliate of Chicago-based multifamily investment manager Redwood Capital Group, which previously paid $18.35 million in August 2015. Redwood still owns two apartment complexes in Greater Orlando totaling 993 units.
ARA Newmark's Scott Ramey was part of a team that represented the seller. The property was positioned as a value-add opportunity through interior upgrade options, despite 90 percent of the units having been rehabbed over the past five years.
The buyer sourced a $21.43 million loan from Prudential Affordable Mortgage Company to help close the deal.
Chandler gets most of its investment equity from a network of friends and family, Jost said. The company is "aggressively looking for more properties in Orlando, but it's a competitive market with more buyers than sellers right now."
Ideal specs being sought by Chandler include multifamily with between 200 and 400 units, and those with value-add potential through renovations or better management.