Dominium Buys Affordable Property in Florida
Multifamily owner Dominium has bought the Nassau Bay Apartments in Orlando, Fla. Dominium will be investing about $16,000 per unit in renovations to improve common spaces as well as individual units.
By Dees Stribling, Contributing Editor
Orlando, Fla.—Multifamily owner Dominium has bought the Nassau Bay Apartments in Orlando, Fla. The Minneapolis-based company paid an unspecified price for the property, which includes 492 affordable units. Just last month, the company also bought 208 affordable units in Kissimmee, Fla.
Dominium plans to maintain Nassau Bay as affordable housing, which it says is “much needed” in the Orlando market. Dominium will be investing about $16,000 per unit in renovations to improve common spaces as well as individual units.
Renovations will include replacement of HVAC equipment, new countertops and cabinets and lighting as needed in individual units. Dominium will also be investing in a new splash pad, a refurbished entry drive and a new bus shelter on the site.
As an apartment market, metro Orlando isn’t nearly as affordable as it used to be. On average, effective rents have climbed 12 percent since bottoming out in 2010, according to investment specialist Marcus & Millichap. The company predicts that 2013’s increase in effective rents will be 3 percent.
Dominium currently owns or manages over 23,000 units in 22 states. The company specializes in deals under various governmental programs, such as Section 8, FMHA 515, public housing, state agency funded properties and Section 42-Low Income Housing Tax Credit (LIHTC) properties.