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Only two multifamily communities in Florida sold in record $1.85B portfolio deal, and they’re both in Central Florida

The 372-unit Abaco Key apartments at 10712 Mystic Circle.
The 372-unit Abaco Key apartments at 10712 Mystic Circle. (abacokeyapartments.com)

Two Central Florida multifamily communities just traded hands in part of one of the nation’s largest apartment-portfolio sales since 2016.

According to records filed in Orange and Seminole counties, affiliates of Harbor Group International just paid almost $142 million across two transactions that consisted of 740 units in Central Florida as part of a record $1.85 billion portfolio deal between Los Angeles-based Aragon Holdings and HGI.

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In Orange County, HGI affiliates paid about $71.9 million for the 372-unit Abaco Key apartments at 10712 Mystic Circle. The property sits between Disney’s luxury Golden Oak residential community and where Dallas-based Dart Interests, is redeveloping its Grand Cypress Resort.

In Seminole County, affiliates paid about $69.9 million for the Signal Pointe apartments at 2500 Howell Branch Road. The Signal Pointe community sits within the Winter Park zip code area and contains 368 units.

The apartment complexes were the only properties in Florida to trade as part of the larger deal valued at $1.85 billion, including debt. The portfolio consists of 13,243 units across 36 apartment properties located in states like Texas, Colorado, Arizona, Missouri, Georgia and Florida.

According to a release issued by HGI, the acquisition is the nation’s fifth largest apartment portfolio sale and the largest since 2016. Newmark Knight Frank represented the seller and assisted the buyer with debt financing.

The 368-unit Signal Pointe apartments at 2500 Howell Branch Road.
The 368-unit Signal Pointe apartments at 2500 Howell Branch Road. (signalpointe.com)

The deal is part of Aragon’s broader $2 billion sale of its entire apartment portfolio consisting of 15,000 units in eight states. In a press release, Larison Clark, founder, chairman and CEO of Aragon Holding, said the firm decided to sell its portfolio because it recognized the properties would have a greater value in the hands of a ‘value-add’ operator.

According to a representative with HGI the apartment complexes sold almost fully occupied. The portfolio consists of garden-style, walk-up apartment communities that feature two- and three-story buildings with clubhouses.

The Abaco Key apartments, built in 1995, features a pool, fitness center, game room, playground, lighted tennis and basketball courts and guest rooms. Meanwhile, the 30-year-old Signal Pointe apartment community features three swimming pools with sundecks, a yoga studio, fitness center, media room, bike storage and a recycling program.

In an email response to GrowthSpotter, Richard Litton, president at HGI, said the company "seeks opportunities in markets with strong housing fundamentals, including economic drivers such as job and population growth as well as those that are located in submarkets close to employment centers and good school districts.

“We believe the Orlando market aligns with these fundamentals, with growing job opportunities driving demand for well-located, convenient housing options. It is an area we have invested in previously.”

In 2018, the company paid $64.5 million for the 314-unit former Linden Crossroads community at 7261 Crossroads Garden Drive. The seller was an affiliate of Trammell Crow Residential, which built the development in 2016.

It also owns multifamily communities in Maitland and Orlando’s Audubon Park.

Have a tip about Central Florida development? Contact me at arabines@GrowthSpotter.com or (407) 420-5427, or tweet me at @amanda_rabines. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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