ORLANDO-Archstone, the Englewood, CO-based REIT, has sold itsArchstone Altamonte Springs development to Title Properties ofColorado for $15.1 million, according to Charles J. Foschini, vicechairman of CB Richard Ellis’ Debt and Equity Finance andInstitutional group in Miami, who, along with team members,arranged for $10.6 million in acquisition financing through FreddieMac for the 224-unit property. The loan has a loan-to-purchaseprice of 70%, a 10-year term, 30-year amortization and a favorable,fixed-interest rate.

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Although it may seem as if all multi-family sales today aredistress sales, in fact, says Robert Given, CB Richard Ellisexecutive vice president in Miami, who also worked on the Archstonedeal, about 60% of multi-family sales today are non-distress salesin South Florida and probably other areas of the state, includingOrlando. “Of the 40% which are distressed, they are typicallyfractured condos or REO projects,” he says.

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“It was an opportune time to sell,” says Foschini, referring tothe Archstone Altamonte Springs sale. “There is a scarcity ofpremium apartment complexes and this one is a B-plus property,which was well-maintained by its institutional owner,” he says. TheAltamonte Springs property features a swimming pool, clubhouse, carwash area, tennis courts, and frontage on Lake Orienta. Plus, saysFoschini, the neighborhood is one of the more desirable submarketsin Orlando.

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The multi-family market is improving, says Given. “We’ve seencap rates on conventional properties compress about 100 basispoints since last October and November.” There is continueddownward pressure on cap rates, because of the scarcity of qualityproduct and there is no multi-family development in the pipeline,he says. “There is also a general consensus that we’ve hit bottomwith regard to job losses and in rental erosion.”

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