DASMEN Residential Buys Florida Portfolio for $101M
- Mar 24, 2021
Amzak Capital Management and The Focus Group have sold its portfolio of five properties in Orlando and Tampa, which underwent $9 million in recent renovations.
DASMEN Residential acquired the Florida residential portfolio for nearly $101.3 million from the sellers, who were represented by Cushman & Wakefield’s Mike Donaldson and Nick Meoli. The portfolio totals 1,011 units and have an overall occupancy rate of 92 percent, according to Cushman & Wakefield.
The properties in Tampa include the 319-unit Jasmine Terrace and the 112-unit Laurel Crossings that are both located near the University of South Florida. In Orlando, the portfolio includes the 192-unit Addington Place, the 200-unit Oak Hill and the 188-unit Oakmont.
The portfolio acquisition has significantly grown DASMEN’s Orlando portfolio as it recently entered the market in January with its $18 million acquisition of a 189-unit community that was also arranged by Donaldson and Meoli. Michael Katz, DASMEN’s CEO, said in prepared remarks that the company believes that Orlando and Tampa will see a strong post-COVID rebound. Meoli also said in prepared remarks that central Florida has been experiencing very high growth in almost all of its market fundamentals and has attracted out-of-state investors.
OPPORTUNITY FOR FURTHER RENOVATIONS
Donaldson said in prepared remarks that the five-property portfolio represented an opportunity for several value-add communities along Florida’s Interstate 4 corridor. Donaldson also said in his prepared statement that the portfolio could see an additional $3 million in effective gross income after fully renovating and stabilizing the communities.
The sellers had previously invested $9 million in capital expenditures and renovated approximately half of the units in the portfolio. According to Cushman & Wakefield, more than $5 million was spent on the Tampa properties which included interior renovations, common area and deferred maintenance alleviation, amenity enhancement and roofing repairs. More than $3.9 million was used for similar renovations to the Orlando properties, according to Cushman & Wakefield.