Deancurt Realty Group Inc, based in Agawam, Mass., paid $12.65 million for the 125-unit Altamonte Manor Apartments in Altamonte Springs, according to a deed filed Oct. 1 in Seminole County.
Deancurt, headed by president Dean F. Curtis, has been actively buying multifamily communities in Central Florida since 2015, when it paid $47 million for three apartment communities in Brevard County, according to Commercial Property Executive.
In January, Deancurt paid $23.75 million for the Veranda Apartment complex), consisting of 208 units across 10, two-story buildings in Mount Dora.
Curtis could not be reached for comment.
Aspen Square Management, which has partnered with Deancurt on prior acquisitions, confirmed it will handle property management at Altamonte Manor. The buyers sourced a loan for the full purchase price from TD Bank.
The deal breaks down to $101,200 per unit. The seller was Altamonte Manor LLC, an affiliate of GDR Management, a Winter Park-based company headed by the Abriola family. The Abriolas bought the complex in 1995 for just under $2.23 million, according to Seminole County records.
Altamonte Manor, located at 875 Wymore Road, consists of 12, two-story buildings plus a combination office/laundry. All the buildings were built in 1972 and 1973, but the apartments have undergone numerous alterations and renovations starting in 1998, according to building permits filed on the county Property Appraiser’s website. A new office/laundry building was constructed in January 2003, according to the permits.
The complex features one-, two- and three-bedroom units with rents running from $895 to $1,395 a month, according to a website for the apartments.
Renovating and increasing the value of tired apartment communities like Altamonte Manor is Aspen’s modus operandi, according to Paul P. Partyka, founder of the Partyka Group at NAI Realvest. The company chooses an older apartment complex with a good location and low rental rates, then makes renovations using their own labor. Then they raise the rental rates, while also increasing the property’s cap rate if they want to sell later.
“They are a value-add company,” Partyka said of Aspen. “They take a property that has an upside. They buy it right and put in some renovations with their own crew. They fix up the amenities, add some game rooms, some exercise rooms.
“So instead of a dollar a foot (rent), they go to $1.25,” Partyka added. “You end up getting a better type of tenant, a more solid tenant, the location is still good. The renovation is all done in-house, which is substantially less than if you went out on the open market. So, they have a lot of built-in advantages.”
For a property that cost Aspen $12 million at a cap rate of 8-9 percent, after renovations and with a stronger, steadier tenant base, the cap rate will go down to about 7 percent, increasing the value of the property by a couple of million dollars, Partyka said.
The Altamonte Manor sale is the latest evidence of the allure this small city (2017 population: 44,2770) has for real estate investors. Named earlier this year by GOBankingRates as one of Florida’s best suburbs for safety and affordability, Altamonte Springs has seen a number of commercial and residential real estate sales over the past four years. Many of the buyers have been from outside Central Florida like Deancurt Realty.
In January, Birmingham-based Shannon Waltchack, paid $8 million for Village Shoppes, an unanchored shopping center at the corner of West State Road 436 and North Westimonte Drive.
A month later, Quantum Capital Partners, a Tampa-based private equity and real estate investment firm, paid $6 million for Altamonte City Centre, a retail strip mall and office building on East Altamonte Drive.
The city has also seen other big apartment complex sales in recent years. In January 2018, Los Angeles-based TruAmerica Multifamily paid $52.75 for the 362-unit Central Park Apartments, located at 535 One Center Blvd.
And in February 2017, multifamily owner/operator Insula Companies paid $18.55 million for Landmark at Hailey Walk, a 168-unit complex at 569 Little River Loop. Insula later rebranded the community as The Edge at Lake Lotus. Insula principal Jeff Talbot said he planned to spend $2.5 million on renovating what was then a 29-year-old complex.