Orlando, Fla.—The Carroll Organization, a privately held multifamily specialist, has acquired the 526-unit Camden Reserve apartment community in Orlando, Fla., for $40.5 million. Camden Reserve includes studio, one- and two-bedroom units that feature private patios or balconies. Built in 1990, the complex is currently 95 percent occupied.
As part of its value-add strategy, the Carroll plans $1.5 million worth of capital improvements to the property. Upgrades will include the creation of a recreational area, as well as improvements to the common areas, the fitness center and unit interiors.
During the past 18 months, Atlanta-based Carroll has been quite active in multifamily acquisitions, making over $450 million worth as of April, but the Camden Reserve deal marks its entry into the Orlando market. The company expects to pass the $500 million investment mark by the end of the second quarter, sourcing properties off-market directly from developers, as well as competing for them on the market. The seller in the Camden Reserve deal was Camden Property Trust.
Orlando has a relatively strong apartment market. According to investment specialist Marcus & Millichap, the market’s vacancy rate dropped 100 basis points in 2012 to finish the year at 5.7 percent. In 2011, the drop was even steeper, at 190 basis points. Vacancy will continue to decline in 2013, the company predicts, in the range of 40 basis points to 60 basis points.
That trend is being spurred by job creation in the metro area, combined with only a middling number of new apartment units. All together, a net of 11,500 new jobs were created market wide in 2012, while 652 new apartment units came on line. About 1,100 new apartments are expected to be completed this year.