Advenir Enters Orlando Market With $27.1 Million Apartment Community Purchase
- Aug 02, 2012
Orlando, Fla.—Advenir, a provider of multifamily real estate investment and management services, purchased a 308-unit community located in the upscale Waterford Lakes submarket of Orlando for $27.1 million and rebranded it as Advenir at Polos East.
“We were attracted to the property because of its significant value to replacement cost, strong market fundamentals and clear value-add potential,” Todd Linden, Advenir’s chief acquisition officer, tells MHN. “We are based in Florida and have done a lot of due diligence on Orlando. This is our first acquisition here. We identified several submarkets and this was at the top of our list.”
The University of Central Florida embodies the surrounding submarket. The university is the second largest school in the United States with 58,000 students and 10,000 employees. The area also boasts major businesses such as Siemens.
“The location has tremendous employment opportunities and also caters to the young demographic in the area,” Linden says. “It demonstrates strong potential to increase rents over the long term.”
Originally built in 1991, the community now offers luxurious interiors including washer/dryers, ceiling fans, exterior storage, patios/balconies, and vaulted ceilings in select units.
“We are primarily focused on interior upgrades and the modernization of the clubhouse to really cater to that younger demographic,” Linden says. “The interiors are focused on a value add approach that will upgrade the kitchens and bathrooms to create a rental increase that we have estimated to be around $75.”
In addition to the clubhouse, amenities for the community include a fitness center, game room, gated entrance, two swimming pools, spa, dog park, racquetball courts, basketball court, tennis courts, sand volleyball court, car wash area and picnic/barbecue area.
Linden says the company saw a clear demand in the marketplace as most of the surrounding properties were either newly built or had recently undergone upgrades, already achieving the rental increases.
“You have to evaluate your investment opportunity.,” Linden says. “There was a clear demand in the marketplace that we are trying to take advantage of.”
Advenir at Polos East features 140 one bedroom/one bathroom units, 136 two bedroom/two bathroom units and 32 three bedroom/two bathroom units. Currently, rents average $750-$1,100 per month.
“Advenir is actively looking to acquire stabilized income producing multifamily assets in markets that have exhibited, and are projecting, healthy economies, positive employment growth, and in-migration,” Linden says. “Historically, we’ve been a value add investment company looking for opportunity to buy that B, B+, A-. property, come in and modernize some of the amenities and interiors, and push rents to achieve greater income.”
It’s a philosophy that has served the company well. Advenir has owned and operated 10,000 multi-family units valued at more than $1 billion. In the past year, the company has acquired more than 2,300 multi-family units and plans to add another 2,000 units in the next 12 months.