Orlando’s multifamily market just got hotter.
Multifamily investment and management firm Venterra Realty just paid $104 million for the 607-unit Northbridge at Millenia Lake apartment complex, marking the most expensive acquisition price for an individual apartment complex in Orlando so far this year.
According to a deed recently filed in Orange County, Venterra Realty used affiliate company VR Northbridge Holdings LP to acquire the rental community at 4902 Millenia Blvd. from an entity tied to the Chicago-based real estate investment firm Waterton.
The deal breaks down to a little more than $171,330 per unit. To give a comparison, the nearby 329-unit Aqua at Millenia apartment complex sold for $171,732 per unit in 2017.
CBRE’s Luke Wickham helped broker the Aqua at Millenia deal. He told GrowthSpotter that the $170,000 price per unit is “pretty on brand," given its location, but what makes the sale of Northbridge so unique is its size and age.
“Northbridge is more than 12 years old and is trading for almost $172,000 per unit," Granade said. New luxury garden-style multifamily produc can typically fetch upwards of $250,000 per unit, he adds.
For example, the recently sold 288-unit Bainbridge at Nona Place apartments in Lake Nona traded hands earlier this summer for $73.8 million or $256,250 per unit.
The Northbridge at Millenia Lake deal follows the highest-priced sale of a multifamily housing property yet in the Greater Orlando area, which according to CBRE took place last year when the Related Companies dropped $112 million for the Timberlake & The Glades apartments in Altamonte Springs.
“A hundred million plus deals are rare for Orlando,” Wickham said. But that’s likely to change, he adds. “There’s a ton of liquidity and investors wanting to be in Orlando and Central Florida.”
Northbridge at Millenia Lake was developed in 2005 by Winter Park-based affordable housing developer Atlantic Housing Partners. As part of its initial investment deal, the company reserved 20 percent of the units to low-income households, while the remaining balance of units were rented at market rate.
Company spokesperson for Venterra, Chris Griffin, confirmed that 20 percent of units will continue to be restricted.
According to online marketing material provided by the firm, monthly rents for the market-rate units at NorthBridge range from $1,300 for a one-bedroom apartment to more than $1,837 for a three-bedroom apartment.
Houston-based Venterra owns and operates 58 communities across the southeast United States. The acquisition of Northbridge at Millenia Lake adds a third location to its Orlando area presence.
In a written statement, Venterra said plans for Northbridge at Millenia Lake include renovating the office, adding technology, adding upgraded finishes and features to the apartments, and refurbishing amenities as needed.
Features at NorthBridge include 26,000-square-feet of ground-floor retail space, a state-of-the-art fitness center and two resort-style swimming pools.
According to a mortgage filed in Orange County, Walker & Dunlop structured about $67.8 million in Fannie Mae financing for the deal.