Real estate investment trust company United Dominion Realty Trust (dba UDR Apartments) just dropped a large sum of money to own a Maitland apartment community built in 1998, while two other developers got their funding for new projects in Osceola County.
According to a recently filed deed in Orange County, the company purchased the 663-unit Arbors at Maitland Summit apartment community for $177.5 million cash, which breaks down to $267,722 per unit.
The seller, Chicago-based multifamily investors Redwood Capital Group, is walking away with a hefty profit. Records show it paid $102 million for the property in 2017, meaning the asset increased in value by nearly 75%.
Located at 8427 Milano Dr. in northwest Maitland, the 37.77-acre property features 26 garden-style, three-story buildings. Amenities include an aerobic studio with classes, a community clubhouse with fitness and business centers, a gated entrance, private sunbathing decks, racquetball courts, sand volleyball, tennis courts, three swimming pools and a tot lot.
Brian Moulder and Chris Chadbourne with Walker & Dunlop’s investment sales team represented the seller and marketed the property as a trophy value-add asset. While the sellers had updated common spaces and amenities, the new owners will be able to complete the renovations of unit interiors, bringing them up to today’s standard with vinyl plank flooring, new appliances, white shaker cabinets, stone counters and tile backsplashes. Units with a completed renovation package garner up to $400 more per month in rent, according to the marketing materials.
Terms agreed upon by the buyer state it or future buyers are not allowed to convert the apartments into condominiums.
Apartment projects in Margaritaville and Sunrise City awarded over $123 million in construction loans
Meanwhile, new multifamily construction is continuing at a rapid pace. Two projects slated for Osceola County’s tourism corridor received construction loans this week.
Northwood Ravin has already commenced construction on its luxury community in Sunrise City, just off S.R. 535 at Osceola Parkway. The North Carolina-based company that previously completed the nearby Solstice apartments purchased the 45-acre site in 2019 for $25 million. This week the firm received $77.58 million in construction financing from Wells Fargo for the Sunrise project.
The approved construction plans call for a total of 465 apartments spanning both sides of Sunrise City Drive, to be followed by a second phase with a comparable number of units. The site plan features a combination multi-story buildings of garden-style flats and carriage house units. The parking plan is a combination of surface parking and detached garages along with designated areas for ride-share services.
“Sunrise will be an exceptional one-of-a-kind apartment community in Orlando,” Marketing Director Courtney Patterson said. “It will have two large zero-entry resort pools, two large gyms, an on-site barista and concierge, and a large lazy river with three waterfalls and a water basketball court. The community will also offer two dog parks and splash pads, a two-story outdoor kitchen, an indoor spa with hot tubs, saunas, and steam rooms and a golf simulator room.”
Patterson told GrowthSpotter the company decided to up the ante on the amenities because “we believe Orlando residents deserve to live in an apartment community that offers the same quality experiences and services that the Orlando hotels and theme parks do.”
The complex will offer a variety of floorplans ranging from studios up to the largest units with four bedrooms and four bathrooms. Patterson said framing starts in November, and the first units should be available by summer of 2022. The project will be completed in early 2023.
Also this week, Boca Raton-based Encore Capital Management moved a step closer to building a 352-unit apartment complex Phase 8 of Margaritaville Resort. Encore sold the apartment site to an affiliate of Falcone Group for $6.4 million. Pacific Western Bank provided $45.6 million in construction financing for the new project.
ARC3, which designed the Domain Apartments at Margaritaville, is the architect for the multifamily community. The site plan calls for a mix of 3- and 4-story buildings with a community clubhouse and private pool.