UPDATED: April 4, 2017 11:42 AM — Affiliates of New York-based White Eagle Property Group paid more than $64.13 million in late March for the 480-unit Auvers Village apartments near Orlando's Baldwin Park, its 12th asset in Central Florida and second local acquisition within the past five months.
The company should invest another $1 million or more over the next 18 months in capital improvements, and has another apartment community under contract in Greater Orlando, chairman and CEO Jeff Weiskopf told GrowthSpotter on Tuesday.
Located at 5800 Auvers Blvd., the 36.9-acre property features 24 three-story buildings built in 1989, with one-, two- and three-bedroom apartments around a series of lakes. Amenities include three community pools, a fitness center, new dog park, soccer field, playground, basketball court and summer kitchens.
"We saw an opportunity to add value to this property, and continue to be drawn to Central Florida," Weiskopf said. "The business matrix in Orlando works well for us. The amount of apartments per employment growth, rising rental rates, increasing interest rates that may make it more difficult for people to buy homes. The economic factors there are terrific right now."
The sale closed on March 23, with the deed recorded Monday in Orange County.
"We'll put a million dollars or more into this property over the next year and a half, mostly improving the apartments, amenities and general repairs," Weiskopf said.
CBRE's Shelton Granade, Luke Wickham and Justin Basquill represented the seller, Salt Lake City-based Bridge Investment Group.
A Bridge Investment affiliate and partner previously paid $50.65 million in August 2014 for the property. The community was 93 percent leased last month at time of sale.
The seller fully or partially upgraded two thirds of the units prior to sale, according to CBRE.
It fits White Eagle's acquisition criteria of Class A and B assets of 200 units or more with clear value-add potential. The privately-held company now owns more than $1 billion in assets nationwide, Weiskopf said.
Officials with Bridge did not respond to requests for comment on Monday.
The buyer sourced a Freddie Mac loan worth $51.5 million via Capital One Multifamily Finance to close the purchase.
The sale deed includes a condition that White Eagle will not convert the property to condominiums before Aug. 28, 2019.
Bridge Investment Group may now own only two multifamily properties in Orlando following the sale, but is actively seeking value-add Class B apartment communities in Orlando, with up to $200 million potentially ready to spend in the Orlando-Tampa area, a lead executive with the company told GrowthSpotter in late January.