Multi-family owner-operator McKinley closed Thursday on its 22nd property in Greater Orlando and ninth in the vicinity of Universal Orlando, paying $25.5 million for the 252-unit Serrano Apartments on Conroy Road.
To be renamed Amalfi Apartments, the former Serrano lies in a cross-section of Conroy, Kirkman and Vineland roads that McKinley knows well, as it's now owner of nine properties and manager of 11 in that sub-market.
"We have owned and operated apartment communities in the Universal Orlando sub-market since Spring of 1982," Albert M. Berriz, CEO and co-owner of McKinley, told GrowthSpotter. "The job growth and population fundamentals that are present in Central Florida are like no other market that we operate in nationwide."
The Michigan-based company plans extensive renovations and new amenities to give the property a resort climate, including condominium-grade unit interiors, adding in-home washers and dryers, a bocce court, indoor bike storage, pet washing stations, a dog run park, lakefront beach, and upgrades to outdoor kitchen space with built-in grill, refrigerator and seating area.
"We expect Amalfi to be the very best example of quality workforce housing we have ever redeveloped and offered in Central Florida," said Andrew A. Berriz, McKinley's special projects director responsible for design and redevelopment of the property.
Acquisition and renovation is being financed by a consortium of The PrivateBank and Bank of Ann Arbor. Renovations should start immediately, and be completed within 12 months.
The newly acquired property will make 53 that McKinley owns and operates in Central Florida, with roughly 8,000 units across the eight-county super region and 600 employees between the properties.
Looking forward, McKinley will continue to seek value-add investment opportunities in Orlando and Tampa, two markets it is focusing nearly its entire growth strategy on for the foreseeable future. The company has established a boutique brand it is building with asset groups in Downtown Tampa and Downtown Orlando.
With four properties in its "McKinley City Beautiful" downtown Orlando portfolio, the company favors Orlando's downtown development ring as the area's most reliable growth driver.
The company's typical buy involves 10 days of due diligence after making an offer, with closing 10 days after that for cash. McKinley finances acquisitions with its own capital.
McKinley's purchase of the Amalfi/Serrano property was led by Harry Collison on the buyer side, and CBRE Orlando's Shelton Granade, Luke Wickham and Justin Basquill representing the seller.
The seller, Vif II/Cypress Greens LLC, an affiliate of Cypress Greens Investors managed by AEW Capital Management, previously paid $21.1 million for the property in September 2007.