UPDATED: November 16, 2017 2:10 PM — Dallas-based multifamily owner-operator Lantower Residential paid $59.5 million on Wednesday for the recently completed 282-unit Oasis at Grande Pines apartments in Orlando's tourism corridor, its third local asset buy in the past three years.
Located at 11660 Westwood Blvd., the 16.44-acre site was developed over the past year by Altamonte Springs-based Picerne Development Corp., which previously paid $5.64 million for the land in December 2015. The Class-A property opened this past January, and has 11 three-story buildings with inset garages.
"Picerne was listing it through ARA, we expressed our interest early on in marketing and saw that it was a different market from Waterford Lakes where our other two (Orlando) assets are," COO Philippe Lapointe told GrowthSpotter. "Picerne impressively did the lease-up in under nine months."
The community was in the process of being rebranded on Friday as Lantower Grande Pines, and the sale price reflects a per-unit value of $210,992.
Lantower's property management division has taken over management on Friday and retained most staff formerly with Picerne. No mortgage documents were recorded with the deed.
"We closed this all cash, but that's not to say we will not finance it afterwards," Lapointe said. "It's one of several acquisitions we're currently doing."
Lantower Residential was formed in 2014, and is the U.S. multifamily arm of Canada's largest diversified real estate investment trust, H&R REIT.
This is Lantower's 14th multifamily asset investment, per its portfolio page online, and its third in Orlando. The company has focused its acquisitions thus far on new Class-A apartment complexes in growth states like Texas, Florida and North Carolina, though it previously targeted older value-add properties.
"We're very bullish on the Orlando market, and like the breadth and depth of the economy there," Lapointe said. "Going forward our next acquisitions will be assets built within the last 10 years in strong submarkets with constrained supply. We're now seeking institutional-quality assets that tend to be younger with stable cash flow."
This parcel is part of the former 206.76-acre Marriott Grande Pines Golf Course south of SeaWorld, which an affiliate of New Jersey-based Ridgewood Real Estate Partners bought in February 2014 for $24 million, and led through rezoning and entitling over the two years that followed.
Ridgewood and a joint venture affiliate divvied up part of the land and sold to three multifamily developers, which included this site for Picerne, an 11.92-acre site to Atlantic Housing Partners for 178 units, and a 16.26-acre site to The Bainbridge Companies for 322 units.
Another 107.43 upland acres of the former golf course was planned for up to 436 single-family homes and townhomes, and 7.38 acres fronting International Drive for commercial outparcels, both of which are still owned held by Ridgewood's affiliate.