Orlando Multifamily Wrap-Up – July 2020

Affordable Sanford community sells in $71.8 million deal. Northshore Development lands $47 million refi. See our July selection of Orlando must-reads.
Indigo at Champions Gate. Image courtesy of Batson-Cook Development Co., Red Clay Development Partners and Atlantic Residential

Orlando’s multifamily market faced significant challenges in July as the state’s COVID-19 case count skyrocketed. Many of the metro’s larger employers announced layoffs even as major theme parks remained open but at significantly reduced capacity. The government’s reaction was mixed: While Governor DeSantis extended Florida’s eviction and foreclosure moratorium through September 1, he also approved a state budget cutting $225 million previously set aside for affordable housing initiatives. Despite these challenges, Orlando’s multifamily investors and developers did not hit the brakes, instead shifting focus to high-demand affordable housing in suburban zones. Here’s our July list of Orlando must-reads: 

1. DEAL – Sanford community trades in $71.8 million portfolio deal.

Starwood Capital Group bought the 184-unit Hatteras Sound along with a 360-unit asset in Jacksonville, Fla. Lakeside Capital Advisors was the seller. JLL provided the buyer of the portfolio with two 10-year, Freddie Mac acquisition loans totaling $52.3 million. The 2001-built Hatteras Sound, located at 13000 Island Bay Circle, is some 20 miles north of downtown Orlando. The partially affordable property has one- to four-bedroom apartments ranging from 718 to 1,438 square feet.

2. DEVELOPMENT – Central Florida’s first permanent supportive housing opens in Sanford.

The 81-unit Warley Park caters to homeless individuals and families, with a priority for veterans and the chronically homeless. Wendover Housing Partners broke ground on the $19 million project in April 2019 with financing from Florida Housing Finance Corp. The community is at 1500 W. 25th St., some 23 miles northeast of downtown Orlando. A nonprofit organization will provide residents with mental health-care services, after-school kids programming and job training and placement.

3. FINANCING – Northshore Development lands $47 million refi.

Colliers International secured the three-year loan from Benefit Street Partners for Aqua Palm Bay Apartments, a 320-unit development in Palm Bay. The developer broke ground on the project in 2018, financing construction with $37.3 million from BBVA Compass Bank, according to Yardi Matrix data. The Class A community’s four buildings, located at 2133 Robert J. Conlan Blvd. NE, have a mix of one-, two- and three-bedroom floorplans.

4. DEVELOPMENT – Workforce housing comes to Champions Gate.

A joint venture of Batson-Cook Development Co., Red Clay Development Partners and Atlantic Residential began construction on the 300-unit Indigo at Champions Gate. The 17.8-acre project site at the corner of Ronald Reagan Parkway and U.S. Highway 27 is some 25 miles southwest of downtown Orlando. Synovus Bank and Marble Capital are providing financing for the project which will include 10 three-story residential buildings. Completion is slated for late 2021.