ORLANDO—An Investcorp-TruAmerica multifamily joint venture has acquired a 708-unit, two-property apartment portfolio in Orlando for $98 million. The purchase of the 360-unit Montevista at Windermere and the 348-unit Highpoint Club marks TruAmerica's entry into the Southeast property markets.
Los Angeles-based TruAmerica, one of the 50 largest multifamily owners in the United States only four years after its founding, has been actively seeking investment opportunities in Florida, according to Eastern US director of acquisitions Matthew Ferrari. The firm established an East Coast office late last year.
“Investment sales in Florida have been much slower in the first half of the year which has created a frenetic and competitive market for quality assets,” says Ferrari. “We were able to leverage our successful track record and relationships to acquire these properties in what was a very intense competition.”
Both Montevista and Highpoint are institutional quality assets located in desirable neighborhoods with schools less than 10 miles from Downtown Orlando. Each multifamily community features a mix of one-and two-bedroom floor plans and amenities including a resort-style pool, resident clubhouse, dog park and fitness center.
More than 60,000 people moved to Orlando last year and the population is expected to grow by 7.7% through 2021, providing a steady flow of potential new renters to the region, according to CBRE Econometric Advisors.
“The Orlando economy has diversified well beyond tourism and is now home to new jobs from a broad group of employment sectors including healthcare, telecom, bio tech, and high technology,” says Brian Kelley, managing director with Investcorp's Real Estate Group, which has now partnered with TruAmerica on eight multifamily investments throughout the United States. “These sectors have fueled the Orlando job engine, which is leading the rest of the nation in employment growth.
The Orlando-based team of Shelton Granade, Luke Wickham and Justin Basquill, also with CBRE, marketed the property on behalf of the seller. The investment will benefit from seven-year floating rate agency debt financing arranged by Richard Jordan's Atlanta-based CBRE team.
What factors are influencing investor strategies? Kurt M. Westfield, director of investment at WC Companies, has some thoughts. (Here are seven ways to cut multifamily costs now.)
“Asset availability, lending guidelines and/or flexibility, and global markets will likely be the largest and most influential factors,” Westfield tells GlobeSt.com. “Sellers are finding that the current cycle provides an opportunity to release an asset at a strong capital gain. However, recycling that capital into another property is becoming a challenge within respective core markets. This could alter investment models and push investors of one sector into another.”
ORLANDO—An Investcorp-TruAmerica multifamily joint venture has acquired a 708-unit, two-property apartment portfolio in Orlando for $98 million. The purchase of the 360-unit Montevista at Windermere and the 348-unit Highpoint Club marks TruAmerica's entry into the Southeast property markets.
Los Angeles-based TruAmerica, one of the 50 largest multifamily owners in the United States only four years after its founding, has been actively seeking investment opportunities in Florida, according to Eastern US director of acquisitions Matthew Ferrari. The firm established an East Coast office late last year.
“Investment sales in Florida have been much slower in the first half of the year which has created a frenetic and competitive market for quality assets,” says Ferrari. “We were able to leverage our successful track record and relationships to acquire these properties in what was a very intense competition.”
Both Montevista and Highpoint are institutional quality assets located in desirable neighborhoods with schools less than 10 miles from Downtown Orlando. Each multifamily community features a mix of one-and two-bedroom floor plans and amenities including a resort-style pool, resident clubhouse, dog park and fitness center.
More than 60,000 people moved to Orlando last year and the population is expected to grow by 7.7% through 2021, providing a steady flow of potential new renters to the region, according to CBRE Econometric Advisors.
“The Orlando economy has diversified well beyond tourism and is now home to new jobs from a broad group of employment sectors including healthcare, telecom, bio tech, and high technology,” says Brian Kelley, managing director with Investcorp's Real Estate Group, which has now partnered with TruAmerica on eight multifamily investments throughout the United States. “These sectors have fueled the Orlando job engine, which is leading the rest of the nation in employment growth.
The Orlando-based team of Shelton Granade, Luke Wickham and Justin Basquill, also with CBRE, marketed the property on behalf of the seller. The investment will benefit from seven-year floating rate agency debt financing arranged by Richard Jordan's Atlanta-based CBRE team.
What factors are influencing investor strategies? Kurt M. Westfield, director of investment at WC Companies, has some thoughts. (Here are seven ways to cut multifamily costs now.)
“Asset availability, lending guidelines and/or flexibility, and global markets will likely be the largest and most influential factors,” Westfield tells GlobeSt.com. “Sellers are finding that the current cycle provides an opportunity to release an asset at a strong capital gain. However, recycling that capital into another property is becoming a challenge within respective core markets. This could alter investment models and push investors of one sector into another.”
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