Praedium pays $49.5M for new Ocoee apts, seller's adjacent retail project on hold

A view from the pool area at the 242-unit Park Place at Maguire Apartments in Ocoee.
A view from the pool area at the 242-unit Park Place at Maguire Apartments in Ocoee. (The Praedium Group)

UPDATED: JULY 6, 2017 4:02 PM — New York-based real estate investors The Praedium Group paid $49.55 million on Friday for the 242-unit Park Place at Maguire apartments in Ocoee, its fourth multifamily asset in Greater Orlando and second purchase in the past year.

Located at 1750 Maguire Road northeast of the intersection with Tomyn Boulevard, the apartment complex lies on a 11.35-acre parcel just south of the Florida Turnpike, and one of Ocoee's main intersections in Maguire and W. Colonial Drive.

Details on which local ice cream chain the developer has signed for its Park Place Retail Center, and where it stands in pre-construction planning.

The seller was an affiliate of Windermere-based Skorman Development, which built and opened the $50 million Park Place apartments in October 2015. The developer went through two rounds of contentious attempts to rezone the site from office to multifamily and retail, succeeding in early 2015.

Skorman's second phase of the project, an 18,000-square-foot retail center directly south of the apartments, was expected to see construction start in late 2016. But commercial building permit applications have yet to be filed, Ocoee planning staff said Thursday.

The Praedium Group is a privately-held real estate investment firm that focuses on under-performing and undervalued assets across the United States, and has sponsored a series of nine private equity funds and several separate investment vehicles, per its website.

Capreit Residential Management was brought on in the past week as new property manager, replacing JMG Realty, and will be enhancing the dog park and landscaping as immediate capital improvements, staff said on Thursday.

This Boca Raton-based buyer now seeks CRE consultants to advise on what to do next, after winning a legal dispute over the property with a local partner.

The buyer sourced a $31.72 million loan from Jackson National Life Insurance Company to help finance the deal.

The purchase is Praedium's second in this market in the past year, following a $60.4 million acquisition in June 2016 of the 338-unit Integra Cove apartments near SeaWorld.

Officials with Praedium did not respond to requests for comment on Thursday.

Have a tip about Central Florida development? Contact me at bmoser@growthspotter.com, (407) 420-5685 or @bobmoser333. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.