Altamonte Springs-based ContraVest has sold the 292-unit The Addison on Millenia apartments it developed in 2016 to a South Florida investor for a recorded $62,617,000 as it plans two other multifamily projects in the area.
The timeframe fits the expectations ContraVest had when it planned the 11.8-acre project, said principal Steven Ogier.
“It was about 20 months’ build time, and we were leasing alongside construction as we were finishing up,” he said. “... It probably was one of the fastest lease-ups we’ve had in our company.”
Shelton Granade of CBRE represented the seller. The project was a joint venture with BBX Capital Real Estate. The buyer is an affiliate of BC Investments of Miami, with which the CBRE team has familiarity, Granade said.
"This was a good fit for BC in particular; they were looking to upgrade the age of their portfolio a little bit," Granade said. "They were looking to sprinkle in a new asset or two in really high-demand spots ... This one definitely fit the bill.
"... They're not a company that's going to buy 20 properties a year -- they're pretty selective in what they go after."
Financing also went through CBRE, which transacted a Fannie Mae mortgage in the amount of $38,225,000, senior vice president Paul Ahmed said, as BC also was handling the transactions under 1031 tax codes after having recently sold the Solis at Winter Park property.
"It's a Class A property in a really strong location from both a demographic and an economic-driver perspective," Ahmed said. "There were any number of opportunities we could have done [financing] with."
Addison-branded multifamily developments are under contract near Orlando International Airport and near Lake Bryan on South International Drive, Ogier said, as well as the Skyway Marina development in Pinellas County in the Tampa Bay area.
“We’re finalizing our physical due diligence and our site plan,” Ogier said of the property on State Road 436 just north of the Beachline Expressway and OIA, with an informal pre-app meeting having taken place and submittals aimed at the November meeting cycle.
“Orlando’s employment and inward-migration numbers are really strong, and we’re fortunate because it’s right here in our backyard. We’re seeing a lot of outside capital that wants to be in Orlando – we all read the same tea leaves and economic reports, and they want to invest where the metrics are good. ... Multifamily as an asset class is becoming stronger and stronger, with more and more capital coming into that space looking to buy stabilized multifamily assets.”