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Inland Atlantic sells Clermont apartment building for bargain price

Rendering of the 144-unit Lofts at South Lake apartments in Clermont.
Rendering of the 144-unit Lofts at South Lake apartments in Clermont. (Inland Atlantic Development)

Atlanta multifamily developer Inland Atlantic Development Corp. sold its recently completed Lofts at South Lake apartment building this month for $24 million to a Sarasota-based family investment group.

The 144-unit Class-A building is well-located, right across the street from the Orlando Health campus in Clermont and the adjacent National Training Center. Inland bought the site when it was zoned for a medical office building and figured out a way to incorporate the existing parking garage into the 5-story building.

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The community amenities include a pool, a contemporary clubhouse with coffee lounge, theater and game room, a fitness center, poolside summer kitchen, Luxor locker system, pet spa, bike storage, valet trash service and ButterflyMX video intercom. The unit interiors feature high-end finishes, like 11-foot ceilings, Italian cabinetry, granite counters and frosted glass barn doors.

The deal breaks down to $166.66 per unit — a price virtually unheard of for new Class-A construction in the Orlando market. The buyer is Sunshine Companies LLC, which is led by Sarasota investor John D. Gentis. Wells Fargo provided $20.48 million in financing for the acquisition.

The deals took place across three separate transactions that combined amount to nearly $150 million.

For comparison, most new multifamily builds in this market have sold for well over $200,000 per unit. The Gate at ChampionsGate sold for $211,000 per unit; Courtney at Lake Shadow, which was built in 2015 by ContraVest, sold earlier this year for $235,655 per unit.

In more desirable locals like College Park and Winter Park, deals have closed this year for $275,130 per unit and $315,112 per unit, respectively.

Whereas Class B and C rehabilitated properties are more likely to sell for the $160,000 per unit range. Sarasota-based Insula Companies, which specializes apartment community acquisition and revitalization, sold the 35-year-old Park East Apartments in March for $162,130 per unit.

Jamie May, CEO of JBM Institutional Multifamily Advisors, brokered the deal for Inland Atlantic. He could not be reached for comment, so it’s unknown if the coronavirus pandemic played a role in the pricing.

Multifamily investment sales took a nosedive earlier this year due to uncertainty in the market. But Real Capital Analytics reported that sales rebounded nationally to $24 billion in the third quarter, according to National Real Estate Investor. While the total volume of sales was about half of where it was in 2019, the average prices were 6.7% higher.

Two other Inland-developed Lofts projects in Lake Mary and Sanford were completed in 2016 and 2017 respectively and have been sold.

Have a tip about Central Florida development? Contact me at lkinsler@GrowthSpotter.com or (407) 420-6261, or tweet me at @byLauraKinsler. Follow GrowthSpotter on FacebookTwitter and LinkedIn.

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