A group of private investors paid $4.625 million in late December for a 42-unit multifamily property in Southeast Orlando, and are seeking more workforce housing acquisitions locally, a managing member told GrowthSpotter.
Located in the 3100 block of S. Bumby Avenue next to the Fort Gatlin Recreation Complex, the Magnolia Villas condominiums consist of 21 duplexes, all single-story with about 780 square feet each. The deal closed on Dec. 19, and was recorded Tuesday in Orange County.
"Orlando is a market still in need of multifamily workforce housing, so this is an example of a great location with high-quality product that can deliver a housing choice different from all the Class A towers you're seeing built downtown," said Ken Polsinelli, former Chief Real Estate Officer with one of the nation's largest multifamily owner-operators McKinley, Inc., and now a principal of Winter Park-based Sora Capital Partners.
Serving as managing member of the buyer 2300 Chera Investors LLC, Polsinelli helped bring together a group he describes as experienced real estate professionals both local and out-of-state "who are committed to multifamily in Orlando."
The property was fully occupied at time of sale with existing rents near $1,000 per month, Polsinelli said. The buyer brought on Florida Realty Investments as a new third-party property manager.
"I think the value-add opportunity is in having local and professional management operating the property daily, that will be an important distinction from past ownership," he said. "Multifamily real estate is really a service business, and the ability to provide responsive and great service is the big part of this opportunity to invest locally."
The seller was Global Real Estate Capital, a Delaware-based LLC that can be traced to London and managing member Rishi Passi, CEO of Oblix Capital.
Global Real Estate Capital bought out the condos in February 2014 and terminated the former Chera Court Condominium Association for an unrecorded sum. A deed in November 2013 had the firm paying $1.8 million for 39 of the 42 condo units.
No immediate capital improvements are being planned by the new owner, as the former completely renovated unit interiors in recent years to condominium grade, Polsinelli said.
Looking forward, Polsinelli said he and his partners will continue seeking more workforce multifamily housing acquisition opportunities in Greater Orlando.
"Central Florida has a very bright future from our perspective," he said. "Most attractive is an asset that can provide a high-quality experience for residents at a rent within reach of most of Orlando's workforce, and that still provides investors a reasonable return. There's more of that product needed here than Class A apartments."