Lloyd Jones, a Miami-based real estate investment, development, and management firm, is actively looking to invest in Central Florida multifamily properties.
The company blasted out a press release last week, publicizing its most recent acquisition in the market — a 306-unit apartment community directly east of Orlando’s tourism corridor — along with its intent to focus on picking up more Orlando properties that are “well-positioned for value-add opportunities,” Ashley Socarras, executive vice president of investments, said in the release.
Orange County records show the company paid $65.25 million for the Arium Grandewood apartment community at 3701 Grandewood Blvd., built in 2005. The deal breaks down to $213,235 per unit.
The seller, Bluerock Real Estate, is an institutional alternative asset manager based in New York. In addition to it real estate investment trust, the company also manages the Bluerock Total Income+ Real Estate Fund, which invests most of its assets in institutional private equity real estate securities.
Records show the Bluerock Real Estate paid $43.3 million for the 27-acre property in 2014.
Lloyd Jones plans to invest $2.7 million upgrading nearly all of units from top to bottom. According to the company’s website, it also rebranded the apartment complex to Grandewood Pointe Luxury Apartment Homes. Lloyd Jones will manage the community.
The garden-style apartment community consists of one- two-, and three-bedroom units and an amenity package that includes a resort-style pool, BBQ pavilion, fitness center, volleyball court and business center. In the release, Stuart Keller, senior vice president of asset management, said the planned capital improvements will appeal to the growing number of young professionals moving to the area.
Orlando’s metro population has grown over 23% in the last decade, with total employment jumping almost 36%, according to a 2020 multifamily market outlook report by CBRE. And a report published late last year by the Florida Apartment Association (FAA) and HR&A Advisors Inc. found that the number of renter-households earning more than $100,000 grew by more than 68% in Orlando and Jacksonville, between 2010 and 2018.
Cushman & Wakefield’s Nick Meoli, who isn’t involved in the deal, told GrowthSpotter he’s seeing an increased amount of multifamily investment capital target the Tampa and Central Florida markets.
“Buyers are seeing job growth, population growth and a resilience to COVID, which other markets throughout the country are not seeing,” he said.
Meoli, an executive managing director with Cushman & Wakefield’s Florida Multifamily Investment Sales Team, adds Class B and Class C multifamily properties in Tampa and Central Florida have proved to be resilient through the pandemic and are expecting to see rent grow by 4% to 6%.
Value-add investors will, on average, invest $6,000 to $8,000 in capital per door, Meoli said. By doing that, they’re able to increase rent. “We’re seeing 15% to 20% return on capital items spent,” he adds.
Grandewood Pointe is Lloyd Jones’ fourth property in the Orlando market. It’s located just south of the Beachline Expressway, and near the offices of big employers like Lockheed Martin and Darden Restaurants. Nearby, heading west toward International Drive, hotel owner-operator AD1 Global plans to open a dual-branded Element and Aloft hotel that will introduce 284 rooms to the area by the end of this month.
Last year, Lloyd Jones paid $47.2 million for the 292-unit Avisa Lake Apartments at 7960 Pine Crossing Circle.