An affiliate of national REIT Starwood Property Trust paid more than $33.47 million last week for the Avalon Reserve Apartments in east Orlando, its fourth purchase in the past 60 days of affordable housing assets from a local seller.
Located on 21 acres in the Avalon Park community at 14451 Avalon Reserve Blvd., the 300-unit Avalon Reserve was built in 2004 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 seller was Avalon Reserve Ltd., an affiliate of Orlando-based AGPM LLC and Banyan Realty Advisors.
The deed was signed Feb. 15 and recorded Wednesday in Orange County. AGPM's property management division was retained by Starwood to manage the asset.
The bonds issued for Avalon Reserve allowed the 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. HUD documents show Avalon targets a specific population (low-income) with specialized services or facilities.
Avalon Reserve's website said the complex and all AGPM-managed communities offer residents services from The Tree House Foundation, providing social services "to promote a more holistic approach to self-sufficiency to all residents free of charge."
Starwood officials declined to comment Thursday. The buyer sourced a $23.4 million loan for the purchase from Wells Fargo Bank.
In late December, affiliates of Starwood Property Trust paid nearly $44.2 million for a trio of low-income apartment communities in Orlando, also sold by AGPM affiliates, part of a $600 million portfolio deal for 28 properties in Florida.
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.