Utah-based multifamily investor Millburn & Company paid $57 million on Wednesday for its second apartments asset in Orlando since mid-October, buying the 371-unit The Place on Millenia Boulevard with an eye on maximizing limited value-add opportunity.
Located at 5215 Millenia Blvd., the 21.92-acre parcel features 19 buildings of two and three stories, dating to 2007. The sale price reflects a per-unit value of $153,638.
Millburn's purchase of The Place on Millenia follows its Florida market entry on Oct. 13, when it paid $56.45 million for a new and stabilized 312-unit Class A property from Wood Partners.
"This was a bit different profile from that first acquisition in that there is a value-add component at Millenia," principal and CIO Sage R. Sawyer told GrowthSpotter. "We'll renovate the clubhouse and a few interior units to try and get a premium rent for a few nicer units, which we'll do for a small portion of the property.
"We like that submarket of the Millenia Mall area, a lot of jobs and easy access to I-4," he continued. "There's a lot we like about Orlando's economic growth in general."
Like with its first Orlando property bought in October, Millburn has brought in ZRS Management this week to manage the Millenia asset.
Looking to 2018, Sawyer said Millburn is likely to pursue several more multifamily deals in the southeast United States and hopes for Orlando to have a few of those.
The company is seeking assets with 200 units or more, built before the early 1980s, and preferably with large floor plans and an attractive exterior, he said.
The sellers of The Place on Millenia were affiliates of Montgomery-based B&M Management Company, which previously paid $50.08 million in June 2014. ARA's Kevin Judd marketed the property.
The buyer sourced a $40 million Freddie Mac mortgage from Boston-based Berkeley Point Capital, which is scheduled to mature in January 2025.