SCI Investors Buy Apartment Asset Near Disney

Twenty-one other tenant-in-common investors and SCI's private investor group share equity in the acquisition at 3503 Bonaire Blvd. The site is 20 miles south of Downtown Orlando and about seven miles from the entrance to Walt Disney World's 30,000-acre enclave.

SCI declined to identify the seller. The price for the 93%-occupied property represents a 7.72% cap rate, says SCI president Marc Paul. "We're very confident that the Caribbean Isle property will cash flow right out of the gate and perform well over time," Paul says.

Many of his company's clients favor multifamily product. "For one thing, it is what they are the most familiar with, as many of them are selling small apartment buildings. It's a product that they understand." Paul adds his clients "know that even if the market changes, people have to live somewhere. Apartment rents generally increase year after year, and concessions can always be given to weather the down market storms."

The average asking base rent is $686 per month. Paul says there no major marketing or closing challenges to the transaction. "A very smooth deal," he says. Paul and Robert Robotti represented the buyers. John Selby of CB Richard Ellis Inc. of Florida negotiated for the seller. Broker John Selby and Robert W. Miller, senior vice president, multifamily investments, CB Richard Ellis Inc. of Florida, negotiated for the seller.

SCI closed $86 million in property last year and expects to complete $150 million in purchases this year, Paul says. "We are reasonable buyers looking for all commercial property types in strong markets nationwide," he says. The price range sought is $10 million to $50 million with a 7%-plus cap rate. SCI's 10-year-old portfolio is valued at $250 million.