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Multi-Family Residential Developments

Davenport’s Thrive apartment community sold for $109.5M

Minneapolis investment company Timberland Partners Investments this week closed on a deal to buy the 328-unit apartment community of Thrive in Davenport from Thomson Thrift Residential, which completed construction in 2021.

Scott Ramey, Brad Downing and Paul Grant with Newmark’s Multifamily Capital Markets brokered the $109.5 million sale for Thompson Thrift (formerly Watermark Residential). The deal breaks down to nearly $334,000 per unit — that’s more than $100,000 over the per unit sale price of the comparable community in the same market less than a year ago.

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Located off Osceola Polk Line Road and Interstate 4, Thrive is in the growing ChampionsGate-Reunion submarket. It was designed by Humphreys & Partners and includes a mix of their Big House and E-urban garden-style designs.

Texas-based Western International, a Marriott and Hilton franchisee, acquired the parcel fronting on C.R. 532 for a Home2Suites extended-stay hotel.

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“We really like that this apartment community appeals to a wide variety of renters since it offers units that are more townhome-like with attached garages, as well as units in 4 story elevator buildings,” Mike Savides, Timberland Partners Acquisitions & Finance Specialist, told GrowthSpotter. “We really like the growth that this area is experiencing, particularly the nearby Reunion Village and Orlando Health developments.”

Orlando Health is building a stand-alone emergency room – scheduled to open in April – on 28 acres of 108-acre designated for Reunion Village’s mixed-use development.

Timberland also owns a multifamily property about 10 miles north in Clermont. “Long term, we are really excited about this location and believe the area between Tampa and Orlando will continue to see strong growth,” Savides said. The company is looking for more properties in Florida, he said.

Thrive, which is 10 minutes from Walt Disney World Resort and 30 minutes from downtown Orlando, was 93% leased as of the close of the sale on Feb. 14, Thomson Thrift said. The company decides after completing construction and renting most of the apartments whether it will keep the community and manage it or sell it, Josh Purvis managing director told GrowthSpotter.

“It’s an internal decision we make on every single deal,” Purvis said. Being 100% private means the company can be flexible about whether to take on debt to keep a community or to sell it, he said.

Thompson Thrift focuses on smaller markets such as Davenport with specific criteria: good visibility to transportation corridors, near high-end housing, near good schools, near major employers and near health care facilities. The company has built in 20 states, with five under development in Florida for 2022 – Ellenton, Daytona Beach, Land O’Lakes, Lady Lake and Ocala. “We’re going after renters by choice – people who want to be a renter,” Purvis said. The company adds extra amenities and high-end finishes, he said. “We will take our standard product and fair very very well” in the smaller markets.

“The whole country has been undersupplied with housing for about 12 years. We’re seeing increasing occupancies, increasing rents,” Purvis said. “We’ve seen great growth, with Orlando and Lakeland and the growth that they have seen despite covid and the shutdowns. The growth numbers have been incredible.”

The sale follows the April 2021 sale of the 250-unit Verso Apartments on C.R. 532 to a joint venture partnership between TTI Capital and Viking Companies for $57.75 million. Verso, completed in 2020, is another Big House community developed by Garrett Companies. The sale broke down to $213,000 per unit.

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Have a tip about Central Florida development? Contact me at Newsroom@GrowthSpotter.com or (407) 420-6261. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.


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