UPDATED: FEBRUARY 23, 2018 10:16 AM — An affiliate of national REIT Starwood Property Trust paid another $59.1 million last week for two more affordable apartment complexes in Orange County, bringing the sum to six acquisitions since late December of LIHTC-eligible assets from a local developer.
They're all part of a $600 million portfolio deal for 28 affordable housing properties in Florida. Thus far, SPT has paid roughly $136.77 million across two series of purchases in late December, and again in the last week, for six low-income apartment communities in Greater Orlando sold by affiliates of Orlando-based AGPM LLC and Banyan Realty Advisors.
The latest two deeds were signed Feb. 15 and recorded Friday morning in Orange County.
SPT paid more than $31.07 million for the 288-unit West Pointe Villas in Winter Garden. Located at 1201 W. Pointe Villas Blvd., the property feature 36 two-story apartment buildings that date to 2001, set over 29.26 acres.
It also paid more than $28.03 million for the 240-unit Waterford Pointe Apartments in Orlando. Located at 12900 Waterford Wood Circle, this asset has 10 three-story buildings dating to 2001, set over 14.75 acres.
Officials with SPT did not respond to requests for comment on Friday. AGPM's property management division was retained by Starwood to manage the asset. AGPM developed both properties back in 2000.
The buyer sourced a $22.078 million loan from Wells Fargo Bank for West Pointe Villas, to mature in March 2028, and a $20.13 million loan for the Waterford Pointe Apartments.
That mortgage document also indicates that AGPM's Osprey Ridge Apartments in Clermont has also been sold, with a loan value of $12.287 million. A deed for that sale has not yet been recorded in Lake County.
AGPM developed and built all the properties in the early 2000s with the aid of tax exempt financing provided through the Florida Housing Finance Corp. The tax-exempt bonds are issued by the state and U.S. Department of Housing and Urban Development (HUD) to encourage development of affordable housing.
The bonds issued allow investors in the project to take a tax credit equal to 30 percent of the cost incurred to develop the low-income units in the housing project. Each of the former AGPM properties target a specific population (low-income) with specialized services or facilities.
SPT announced on Jan. 4 it would be acquiring the portfolio of LIHTC properties totaling 6,185 units. It did not name the sellers or locations at the time, but said the portfolio was 99 percent leased, and mainly located in Orlando with smaller footprints in West Palm Beach, Tampa and Miami.