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South Florida commercial real estate investors convert Apopka condominiums into apartments

The Milan, built in 2000, consists of two-story buildings that feature a mix of one-, two- and three-bedroom units.
The Milan, built in 2000, consists of two-story buildings that feature a mix of one-, two- and three-bedroom units. (IPA)

Boca Raton-based commercial real estate investment company Duncan Hillsley Capital LLC and Miami-based development firm Ghitis Property Company just successfully converted the Milan Condominium community in Apopka into apartments.

A recently recorded deed in Seminole County reveals the partners paid $38 million to dissolve the condominium title and purchase the 240-unit community at 500 Jordan Stuart Circle. The deal breaks down to about $158,330 per unit.

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Shane Hillsley, a director at DHC, confirmed the partners intend to turn the community into a multifamily complex and manage it as such. As part of the deal, he adds, DHC and GPC plan to reposition the property by upgrading the interiors of the units and renovating the common areas.

“Most of the units were already being rented out by investors," Hillsley said. “Only some were owner-occupied.”

In Florida, 80% of the condo unit owners must agree to terminate the condominium, in order to sell the condo complex for a profit.

DHC began pursuing the condo termination in the beginning of the year. The Milan Condominium Association hired Shelton Granade, Luke Wickham and Justin Basquill of Institutional Property Advisors, a division of Marcus & Millichap, to broker the deal.

The community is near major employers like Walt Disney World, Darden Corporation and Lockheed Martin Corporation.

“The most interesting part about [the deal] is that the condo association decided to sell," Wickham said. "I give a lot of credit to the association for being open to do this. It was the best economic decision for all 240 individual owners... They wouldn’t have gotten as much liquidity trying to sell the condos one by one.

The largest bulk-owner owned a little more than 55 units within the community. According to Zillow, the average price range for condos in The Milan community range from about $85,000 to $115,000.

“I would describe the property as an A minus. Shane’s going to bring it back to an A plus,” Wickham said.

The Milan, built in 2000, is located along State Road 436, also known as Semoran Boulevard. The gated community consists of two-story buildings that feature a mix of one-, two- and three-bedroom units. Residents have access to a community clubhouse, fitness center and pool and pool deck.

Nearby, a 168-unit apartment complex built in 1987 recently sold for $26.3 million or about $156,547 per apartment. The buyer, TruAmerica, a Los Angeles-based multifamily investment firm and operator, was the buyer.

The seller, Insula Companies, renovated the common areas before deal transacted. The company bought the multifamily complex in 2017 for $18.55 million.

Have a tip about Central Florida development? Contact me at arabines@GrowthSpotter.com or (407) 420-5427, or tweet me at @amanda_rabines. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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