Jacksonville-based multifamily owner-operator Michaelson Real Estate Group paid $16.85 million on Wednesday for the 160-unit Casienna Apartments in south Orlando, marking its 20th property in Greater Orlando.
Located at 5703 Stoneridge Court, based on the corner of W. Oak Ridge Road and S. Texas Avenue, the 10.25-acre property features 15 two-story apartment buildings that date to 1973.
Michaelson owns three other apartment complexes within a one-mile radius of the property, which drew the company to pursue this Class B asset in an off-market deal, chairman and CEO Michael Moses told GrowthSpotter.
Michaelson made the investment with two 1031 exchange partners and a third private investor, forming a "Tenant in Common" agreement in which Moses serves as general partner.
The seller was SR Apartments LLC, an affiliate of Chicago-based Blackhawk Realty Management and its related investment funds, which previously paid $5 million in July 2011.
The property was leased at more than 95 percent at time of sale, said Moses, and was well maintained by Blackhawk. All units are Class B market rate, with no affordable housing designation.
Michaelson will bring on its own property management staff, and will invest in the coming year in updating unit interiors as leases turn over, Moses said.
The four co-tenant buyers sourced a $13.225 million loan from Walker & Dunlop, formed as a balloon mortgage.
Michaelson now owns approximately 6,872 units in Orlando, not including its properties in Kissimmee and Altamonte Springs, Moses said.