ORLANDO—In Orlando, it's a perfect storm on the multifamily investor front. Indeed, right-priced apartment buildings from class A to class C are turning investor heads.
The Park at Savino, a 200-unit garden style multifamily complex in Orlando, is proving the appetite is strong and getting stronger. Commercial real estate lender Hunt Mortgage Group secured a $10.2 million Freddie Mac loan to finance the acquisition of a multifamily property on an 11.89-acre site at 1980 Lake Fountain Drive in Orlando.
“Apartment demand in the Orlando area has been strong over the past year and is expected to remain so for the long-term,” says Marc Suarez, senior vice president at Hunt Mortgage Group. FVP NKP Savino, a Florida limited liability company.
The loan term is seven years with two years of interest only, amortizing over 30 years at a fixed rate of 3.68%. The loan facility will also be used to cover closing costs and undertake some immediate property repairs.
Marcus & Millichap confirms Suarez's position. “The convergence of still-low interest rates and unsatisfied demand from investors are holding open a unique window for buyers and sellers to execute deals and lock in low long-term interest rates,” the firm reports. “With debt flowing freely, many small investors are focusing on class B and class C properties offered at cap rates starting near 8%.”
The Park at Savino has 10 primary multifamily buildings and three non-residential buildings that house the leasing office/clubhouse, fitness center, and maintenance building. Built in built in 1985, the multifamily asset is 98% occupied.
The Park at Savino is about 14 miles southwest of Walt Disney World, in an area that continues to experience population and household growth across all areas. It also close to major thoroughfares and offers quick access to Downtown Orlando as well tourism and retail corridor demand drivers.
For more trend pieces about Orlando multifamily, check out these recent stories:
Rare Orlando Multifamily Trades Hands
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
