Months after acquiring a high-rise residential building downtown for $101 million, a Beverly Hills-based company has added another Orlando multifamily asset to its portfolio — this time snagging property in the heart of the tourism district.
OpenStreet Capital LLC and JDcap, Inc. closed on the 350-unit Legacy Universal for $129 million, or $368,571 per unit.
The luxury apartment community was built in 2021 by Legacy Partners, which owned it with joint venture partners — Phoenix Capital Management, LLC and Silverpeak Real Estate Partners —until its sale on Aug. 31.
A team of brokers with Newmark Knight Frank represented the sellers in the transaction. The apartment building, located a short drive northwest of where Universal Studios is building its Epic Universe theme park, was 96 % leased at the time of the sale.
This is the second purchase in the Orlando market this year by OpenStreet Capital. In late March, it bought the luxury 320-unit SkyHouse Orlando located downtown just off I-4 at the intersection of Magnolia and Livingston Streets.
That sale came to a cost of $315,625 per unit.
Also this week, Atlanta-based The Hallmark Companies purchased the 122-unit senior affordable living community Covenant on the Lakes on S. Rio Grande Avenue in Orlando for $12.5 million.
Multifamily assets in Orlando remain a hot item. Over the past 12 months, 150 apartment properties have changed hands at a total cost of $9.1 billion at an average of $264,000 per unit, according to a recent market report by Co-Star.
“To say that investors are bullish on Central Florida’s multifamily sector would be an understatement,” the report says. “Several notable transactions have closed over the last year that in previous years would have caused sticker shock but are now indicative of the strength of Orlando’s multifamily sector.”
A handful of sales have closed over the last year exceeding $150 million, the report says. The most expensive transaction in this timeframe was the 672-unit Arium Greenview in the Disney area, which sold in Dec. 2021 for $179 million, according to the report.
Before buying Legacy Universal, OpenStreet Capital took out a $25.3 million loan from State Farm Insurance Company.
With the sale, multifamily developer Legacy Partners can put capital toward other projects, the company’s senior managing director Jon Wood told GrowthSpotter.
Currently, the company is pursuing a plan to demolish a portion of the Volusia Mall in Daytona Beach in order to build a 350-unit apartment community. Wood said there are other new projects in the works as well.
“We are very bullish in the area and this (sale) will definitely give us opportunities to explore new projects,” he said.
With Legacy Universal, the company introduced its Legacy brand into the Orlando market. After acquiring the 11.4-acre site in Feb. 2020, Legacy broke ground mid-2020 and began leasing the following summer.
The Class AAA ultra-modern luxury garden apartment community features a mix of studio, one-, two- and three-bedroom residences, as well as 10 ft. ceilings in all units, Smart Home Technology Package with Latch keyless entry, Honeywell smart thermostats, Leviton smart dimmer switches, quartz countertops, and a stainless-steel appliance suite.
With its amenities and location — in heart of the I-Drive tourist corridor near Universal Orlando Resort and Lockheed Martin’s south Orlando campus — it was an easy sell, said Scott Ramey, the executive managing director of investment sales and multifamily capital markets with Newmark.
“It’s the epicenter for a lot of growth coming into the market,” he said. “That’s a strong performing submarket long-term. That’s why a group like Open Street is willing to buy a property and plant a flag in that submarket for the long term.”
In a news release, he said Legacy Partners “raised the bar” for luxury living in the Orlando area.
“The property is one of the only surface-parked assets in the market to feature two rooftop amenity decks, air-conditioned corridors, and ten-foot ceilings on all units. These design features set the property apart from the competitive set and helped fuel their incredible lease-up. Our team was fortunate to have the opportunity to assist Legacy Partners on the front-end of the project by securing an equity partner and construction financing, so it is extremely exciting to see the project come full circle with the sale.”
Brokers Patrick Dufour, Brad Downing, and Paul Grant joined Ramey in representing the seller in the transaction.