ORLANDO—An upward push in values is causing a market imbalance in the Orlando multifamily market. At least that’s what the sale of a 194-unit apartment community (and other sales like it) suggests.
Colonial Ridge Apartments just traded for $14.2 million. 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 of Pinnacle Realty represented the seller.
“The buyer plans on doing a value add through interior, common area, and curb appeal upgrades,” Kattan tells GlobeSt.com. “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. ”
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,” he says. “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. That’s seven miles west of downtown Orlando. The property has high visibility and a unique unit mix of all two bedrooms.