Multi-Family Residential Developments

UPDATED: Starwood buys first three Orlando LIHTC apt complexes in $600M portfolio deal

A pool-area view of the Magnolia Pointe apartments in Orlando, acquired by Starwood Property Trust.

UPDATED: January 12, 2018 5:20 PM — Affiliates of Starwood Property Trust (SPT) paid nearly $44.2 million in late December for a trio of low-income apartment communities in Orlando, part of a $600 million portfolio deal for 28 properties in Florida.

One of the largest commercial property and mortgage REITs in the country, SPT announced on Jan. 4 that it would be acquiring the portfolio of LIHTC properties totaling 6,185 units.


Described as an off-market deal in an SEC filing, Starwood did not name the sellers or locations, but said the portfolio was 99 percent leased, and mainly located in Orlando with smaller footprints in West Palm Beach, Tampa and Miami.

The first of two sales to register on Thursday was a $23.945 million purchase of the 256-unit Buena Vista Place apartments in Windermere.


Located at 8825 Buena Place, the 46.73-acre property lies directly north of the Walt Disney World entrance at Center Drive, and features 11 three-story apartment buildings that date to 1999. The sale reflects a per-unit value of $93,535.

The seller of Buena Vista Place was Reams Road LP, an affiliate of Orlando-based investment/management firm AGPM, which previously paid $611,100 for the land in 1998 prior to construction.

UPDATE: STP also purchased Phase 2 of Buena Vista Place, which has 84 units, for $8 million. That deed posted on Friday.

Another SPT affiliate paid nearly $12.25 million for the 168-unit Magnolia Pointe apartments in Orlando, an affordable housing complex for seniors age 55 or older.

Located at 1701 Mercy Dr., the 17.38-acre property lies just west of College Park, and features eight three-story apartment buildings dating to 1999. The per-unit value was $72,914.

The seller was Magnolia Pointe Ltd., another affiliate of Banyan Realty Advisors and AGPM.

All three sales closed on Dec. 28, but were recorded late this week in Orange County.

The buyers sourced a $116.745 million loan from Wells Fargo Bank for the entire 28-property portfolio buy, of which $8.817 million was allocated to Magnolia Pointe and $17.213 million to Buena Vista Place.


Noted at the end of that mortgage were descriptions of six other property acquisitions that were part of the overall multifamily note.

Officials with Starwood did not respond to requests for comment this week. The company said in its SEC filing that the full portfolio purchase would close in phases, due to the timing of regulatory approvals and assumption of in-place financing.

The first phase, comprising 1,740 units, closed in late December. SPT expected the remaining phases to close by the end of the second quarter.

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