Upward push in values causes imbalance in the market
Franklin Street announces the sale of 194-unit Colonial Ridge Apartments for $14,200,000. The sale price represents $73,196 per unit and $71.01 per square foot.
Darron Kattan, Robert Goldfinger, and Kevin Kelleher with Franklin Street represented the buyer, a regional owner. The seller is a private partnership based out of New York City that owned the property for nearly 15 years. Larry Ochab with Pinnacle Realty represented the seller.
“The buyer plans on doing a value add through interior, common area, and curb appeal upgrades,” Kattan said. “They have a long management track record for optimizing deals exactly like this one. By bringing efficiency to the expense side of the equation and increasing the rents after the rehab, they will have no issue raising the NOI significantly. ”
Kattan explains that for this transaction, the buyer acquired bridge debt, looking to stabilize the property at a higher rent level over the next two years. Kattan predicts that the buyer will either put permanent debt in place or sell.
“This sale demonstrates the continued upward push in values,” Kattan said. “There is a huge imbalance of buyers and sellers and more debt and equity exists for value-add multifamily deals today then we have seen since 2005 and 2006.”
Colonial Ridge was built in 1989 and is located at 649 Cannon Ridge – seven miles west of downtown Orlando. The property has high visibility and a unique unit mix of all two bedrooms.
About Franklin Street: Franklin Street is a family of full-service real estate companies focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise, and experience of each of its divisions—Real Estate, Capital, Insurance, and Management—Franklin Street offers unmatched value and optimal solutions for clients nationwide. For more information on Franklin Street, please visit FranklinSt.com.
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