New York-based multifamily investor ESG Kullen paid more than $22 million last week for a controlling stake in the 390-unit Grand Reserve at Kirkman Parke condominiums, a property with huge value-add potential that hasn't been updated since its 2000 construction, a principal with the buyer told GrowthSpotter.
Located at 3301 S. Kirkman Road in MetroWest, the 21.8-acre property lies just southwest of the public Eagle's Nest Park. The sale closed on April 19, and was recorded Wednesday in Orange County.
"We're big believers in the whole MetroWest submarket, and this was a 2000 vintage property that we're very excited about," said Eric Granowsky of ESG Kullen. "We have a portfolio of 3,400 units across Florida with a lot of 80s- and 90s-vintage properties, so we're now trying to concentrate efforts on more modern vintage."
The seller was Argenpart LLC, an investment entity made up of a group of Argentinian and international investors that was managed by Alex M. Sakkal, an Argentinian accountant and commercial real estate manager.
The Argenpart group began buying the Grand Reserve condo units in 2011 at distressed prices following the recession, and built up a balance to 195 units, or exactly half of the community's 390 units.
Miami-based TIR Prime Properties was hired last year by Argenpart to market the property for sale.
ESG Kullen responded to a listing, but wanted a majority ownership stake in the property. TIR Prime coordinated the sale of one more individual unit, giving ESG 196 units and a slight majority, said Mariano Saal, associate who coordinated the deal.
"The units were in their original state, so many upgrades can be done to raise rents," he told GrowthSpotter on Thursday. "Occupancy was 97 percent" at time of sale.
ESG Kullen hired Alliance Residential to take over management of the property this week. A thorough renovation plan will be carried out for all unit interiors that includes stainless steel appliances, granite counters and planked flooring to modernize the asset, Granowsky said.
ESG Kullen now owns 552 apartment/condo units in Orlando across two properties, and is currently under contract for another bulk condo purchase of 150 units at a property near the International Drive tourism corridor, he added.
The buyer sourced a $24.45 million loan from NXT Capital to finance the acquisition.