Atlanta-based Preferred Apartment Communities paid more than $81.72 million last week for a 221-unit, 894-bed student housing community near the University of Central Florida, with the seller turning an estimated $9.2 million profit in less than three years.
Located about three miles south of the University of Central Florida campus at 11037 Retreat Ave., the property's 45.72 gross acres have 37.44 developed as the the high-profile student housing community The Retreat at Orlando.
Developed in 2014 by Landmark Properties as Orlando's first housing neighborhood built for college students, The Retreat has cottage-style housing and amenities which include an 11,000-square-foot clubhouse with cafe, business center, 24-hour fitness center and resident study rooms.
Outdoor amenities include a multi-tiered swimming pool with cabanas and hammocks, sand volleyball court, bocce ball court and golf simulator.
PAC's bought the asset through subsidiary Preferred Campus Communities, with its Preferred Campus Management brought on this week to take over the property.
This acquisition is PCC's first student housing property in Orlando, and sixth across four states.
The sale closed on May 31 and was recorded Tuesday in Orange County.
The buyer sourced a $47.1 million Fannie Mae loan through PNC Bank to help close the acquisition, with a fixed interest rate of 4.09 percent, 7.5 years of term remaining and amortization based on a 30-year schedule.
Preferred's sister companies own Orlando-area assets that include three multifamily complexes totaling 1,361 units, and two retail centers totaling 159,138 square feet of leasable area.
The seller was an affiliate of Inland Group's Inland Private Capital, which previously paid $72.5 million in August 2015. It was a market re-entry at the time for Inland, which was drawn back to Orlando and UCF because of their respective population and enrollment growth.