ORLANDO-Mallard Cove Apartments, a 344-unit multifamily complex,has sold for $14 million. Tampa-based Blue Rock Partners purchasedthe asset in a strategic partnership with Deerfield Beach-basedKonover South. The deal marks Blue Rock Partners’ secondOrland-area apartment acquisition in as many months.

|

Cole Whitaker, head of Hendricks & Partners’ southeastregional office Orlando, brokered the transaction. The seller wasMidland Savings Group, acting as servicer for KeyBank. Theproperty, which is 87% occupied, will be rebranded as The Park atCambridge Apartments.

|

“This property was a lender-owned REO, so the pricing was veryattractive as well as the financing,” Randy Ferreira, co-managingpartner at Blue Rock Partners, tells GlobeSt.com. “We like thisneighborhood. The complex is located within minutes of the OrlandoInternational Airport and Downtown Orlando in the Conway area. Thefloor plans are strong.”

|

Blue Rock plans to invest an additional $2.5 million inimprovements to the property. Exterior upgrades will include newsignage, a new fitness center and business center, European-stylecoffee shop and redesigned clubhouse with new furniture, gatedentry system, pool furniture, landscaping, painting as well astennis court and parking lot upgrades. Interior upgrades willinclude new carpet, appliances, counter tops, cabinets, ceramictile floors and back splashes, light fixtures, chair rails andmolding, designer paint colors and more.

|

“The pricing is right down the center of the fairway for assetsof this quality that we’ve seen trade this year,” Whitaker tellsGlobeSt.com. “Multifamily is in favor because of the fact that youhave decent liquidity in the market with Fannie and Freddie willingto finance stabilized assets. There are also a number of bridgeproducts out for properties that are not stabilized.”

|

Blue Rock has acquired four multifamily properties in 18 months.In August, the company closed on the 168-unit Woodbridge Apartmentsand has plans to close on three additional projects in Orland andTampa in 2010 and the first quarter of 2011. The company has thebacking of Konover South, an affiliate of the much larger WestHartford, CT-based Simon Konover Company, which acquired astrategic stake in Blue Rock in mid-2009.

|

“It’s seemingly getting more competitive for multifamilyproperties in Florida, but groups in other states still do not seeFlorida as a great place to buy properties yet,” Ferreira says. “Wekind of like it that way because we feel like it’s the right timeand place to buy multifamily properties.”

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.