Four Corners Big House apartment community sells for $57.75M
Apr 07, 2021 at 1:26 PM
A joint venture partnership between TTI Capital and Viking Companies paid $57.75 million a the recently completed Verso Apartments across from Reunion Resort in Davenport.
Verso was built and delivered by Garrett Companies in mid-2020. The “Big House” style community is currently 94 percent occupied and 97 percent leased, having maintained its target rents with minimal concessions despite the COVID-19 pandemic.
The development’s 250 luxury units feature a variety of modern finishes, including high ceilings; curved archways; quartz countertops; stainless steel appliances; NEST thermostats; walk-in closets; electronic keyless entry; built-in USB charging ports; walk-in showers; full-size washers and dryers; and backyard balconies.
Big House apartments are a trademark design by Texas-based Humphreys & Partners that utilize smaller buildings with 6-14 units, meant to look like a single large residence. Typically most units have private garage entries, large closets and spacious interiors with kitchen islands.
Community amenities include a clubhouse; resort-style swimming pool with a sun-shelf and private cabanas; a spa; an outdoor kitchen and grill area with fire pits; a game room; a full circuit fitness center featuring yoga and an on-demand fitness studio; a guest suite rental; and a coffee bar and pet park.
Berkadia Managing Director Jason Brown served as lead broker for the deal, which breaks down to $231,000 per unit. Managing Directors Matt Wilcox and Brett Moss, along with Associate Tyler Swidler of Berkadia’s Orlando office represented the sellers.
“Davenport’s burgeoning local logistics presence and emerging medical critical mass have proven to drive resiliency throughout Davenport / ChampionsGate, especially relative to some of Central Florida’s harder hit industries since the onset of the COVID-19 pandemic. Additionally, Verso’s highly differentiated ‘big house’ product drove one of the most impressive lease-up stories of any community in Central Florida since the onset of the pandemic,” said Moss.
Asia Capital Real Estate (ACRE), a global real estate private equity firm, provided a $41.75 million bridge loan to support the joint venture’s purchase of the 250-unit community. Executed in mid-March, the two-year agreement carries a loan-to-value ratio (LTV) of 70.2 percent, with options for two single-year extensions.
ACRE made the loan from its recent debt fund ‘ACRE Credit’, which has been focusing on providing financing to apartment communities in growing areas of Florida and the Sun Belt.
“Davenport and the broader Orlando region has been attracting new jobs and residents for many years, and is now benefitting from migration patterns that are driving workers to Florida and the rest of the Southeast,” said ACRE Head of Origination, Daniel Jacobs. “Verso is a well-designed community that has already performed extremely well under adverse conditions brought on by the pandemic. The development stands to benefit even further from accelerated demand from professionals in high-growth industries such as technology, healthcare and logistics – all of which are booming across Central Florida.”
Located at 6100 Echelon Way, Verso is adjacent to Davenport’s Ovation Town Center, which offers residents easy access to a Publix supermarket, Anytime Fitness and a variety of other retail destinations. It’s also in the heart of the County Road 532 corridor that has drawn multiple Class A apartment developments, including next door at Sovereign Town Center.
TTI Capital is a real estate investment and private equity firm strategically focused on investments in middle market companies and commercial real estate properties. Headquartered in Washington, D.C., the company’s portfolio of real estate holdings is concentrated in the Southeast and Texas.
Located in Gainesville, Florida, Viking Companies is a real estate investment firm with a focus on creating lasting community environments. The company’s portfolio includes multifamily and student housing assets, as well as mixed-income office and retail. Viking Companies currently has multiple deals under contract through their partnership with TTI Capital.