Blue Rock Partners, a Tampa-based firm that sold three Orlando-area apartment complexes last year, paid $16.5 million in late June to rebuild its Orlando portfolio with the 215-unit Royal Oaks Apartments on N. Pine Hills Road.
Blue Rock bought the property through affiliate Rock Rose Partners Royal Oaks LP on June 26, with the deed recorded Friday in Orange County. The property is being renamed The Park at Collington, in line with the company's habit of naming multifamily assets after English towns and landmarks.
The seller was Focus JCR Orlando MF Investors II LLC, an affiliate of The Focus Group, a California-based real estate investment, development and management group which previously paid $9.6 million in December 2014.
Blue Rock plans to spend $1.7 million on interior and exterior renovations at the complex, which was built in 1992. Managing Partner Reuven Oded told GrowthSpotter the firm is already talking to local contractors about rehab work at the property.
Interior improvements will include upgraded appliances, new kitchen countertops, goose neck faucets, plantation blinds, two-tone paint, ceiling fans and vinyl faux wood floors.
The company also plans to expand the fitness center to nearly double its current size, buy new pool furniture and redo landscaping and signage. The asphalt parking will be resealed and restriped, and curving will be redone to prevent trip and fall accidents. Entry gate security will be changed to bar coding so vehicles can go in and out uninterrupted.
"We're doing all the usual stuff that a responsible operator does on newly acquired properties," Oded said.
Despite paying $9.6 million more for the property than the previous owner did 2.5 years ago, Oded says Blue Rock got a good deal. The apartments are well-designed and constructed, he said, and feature frontage on busy Pine Hills Road.
"The economics of the deal were compelling first and foremost," Oded said. "Second the location is excellent … right off Pine Hill. It's a main drag, with tens of thousands of cars passing by a day."
Blue Rock, which owns or manages around 8,000 units in Florida, Alabama and Georgia, is especially interested in the Orlando area. The company's other local asset is The Park at Highgate, a 320-unit complex at 3024 N. Powers Dr. in Orlando.
"We're very bullish in general on Orange County," Oded said.
Last year, Blue Rock sold three properties in the area: The Park at Cambridge (now Avesta Bridgewater), 344 units on South Conway Road, Orlando; The Park at Canterbury (now Sovereignty at Winter Park), 168 units; and The Park at Sutton Place (now Lakeside at Winter Park), 266 units.