A joint venture between nonprofit organizations Springboard Nonprofit Consumer Credit Management Inc. and Money Management International (MMI) just sold an affordable housing complex in west Orange County for about $24.8 million.
The 240-unit Seminole Ridge apartment community at 2750 Renegade Dr. was bought by the Kimpact Evergreen Real Estate Investment Fund, which was recently launched by an investment pool linked to Kairos Investment Management Company of Rancho Santa Margarita, California. The company does business as Redwood-Kairos Real Estate Partners.
The sellers joined forces in late 2012, in an effort to tackle a shortage of affordable homes in states impacted the most by the housing crisis. So, it launched a $25 million affordable housing fund that same year and paid $12.5 million to acquire the Seminole Ridge apartments around the same time.
Built in 2000, the community consists of 16 residential buildings with 160 two-bedroom units, 56 three-bedroom units and 24 four-bedroom units.
Last month, Seminole Ridge apartment community was 98.3 percent occupied, according to the Florida Housing Finance Corporation. Its weighted average occupancy for last year was 99.1 percent.
The original developer financed its construction in 1999 with about $10.8 million in tax-exempt bonds and other housing credits from the FHFC. Records show the mortgage for the bonds was satisfied in 2010.
According to terms and conditions committed by the developer, all of the units must be set aside for individuals and families making 60 percent or less of the Area Median Income (AMI) for up to 30 years.
Since its inception, KIMC and its affiliates have invested roughly $187 million of equity into affordable housing. Its commercial portfolio is valued at more than $1 billion and carries more than 12 million square feet, including 11,000 multifamily units, according to its website.
In June, its affiliates launched the Kimpact Evergreen Real Estate Investment Fund, which paid about $103,400 per unit to purchase the Seminole Ridge affordable housing complex. Pinnacle is the proposed management company.
This is its second Orlando acquisition.
In 2017, it bought a 392-unit rental community called the Beacon Hill Apartments for $15.5 million. The property was built in 1999 and also requires the owner to set aside units to low and moderate-income individuals or families.
Another fund to target Orlando, and its affordable housing crisis, stems from South Florida.
Earlier this month, Miami-based Catalyst Capital Management announced the launch of a $50 million fund that will aim to repair and resell foreclosed residential assets throughout Florida.
Andres McBeth, a managing partner at Catalyst, told GrowthSpotter at least 25 percent to 30 percent of that commitment will go toward properties in the Orlando Metro area, including markets in Kissimmee, Orlando and Sanford.