Company to Expand Orlando Presence, Following Market Trends
- May 25, 2011
The Sutton Place Apartment Homes will soon be rebranded and marketed as The Park at Sutton Place, following a recent acquisition by Blue Rock Partners LLC. The real estate management company, in partnership with Deerfield Beach’s Konover South LLC, bought the 288-unit development for a reported $18.2 million and plans to invest another $2.1 million in improvements.
The upscale gated community is strategically located at 3935 Sutton Place Boulevard near two college campuses—Full Sail University and the University of South Florida—and features one- and two-bedroom floor plans with a choice of one or two baths.
This transaction brings Blue Rock’s Orlando portfolio up to nearly 2,000 units, following its October 2010 purchase of the 344-unit Mallard Cove Apartments on S. Conway Road, Orlando, now The Park at Cambridge, and its August 2010 purchase of the 168-unit Woodbridge Apartments, now The Park at Canterbury. The company’s aggressive purchasing mode dates back to 2009, marking Konover South’s strategic stake acquisition in Blue Rock Partners.
According to an annual forecast by Marcus & Millichap, Blue Rock has picked a good time frame for investing in apartments, as a 2.9 percent increase in rents in Metropolitan Orlando is expected next year, up to a midpoint of $863 a month. The vacancy rate for this year is projected at 7.1 percent, notably down from the first-quarter projection of 7.9 percent. More statistical data released by Marcus & Millichap reveal that 800 more units are currently under construction and 400 more are to be completed by the end of the year. In terms of sales prices, projections are less rosy; the effect of distressed sales on the market is reflected in the median sales price of $35,000 a unit, down 29 percent from 2009.