Passco Spends $54M on New Orlando Transit-Oriented Community
- May 05, 2016
Orlando, Fla.—Newly constructed multifamily community The Ivy is already getting a new owner thanks to its strategic location in the Florida Hospital Health Village, home to the country’s second largest hospital. Passco Cos. LLC has acquired the 248-unit, Class A+ community, pointing to the strong job growth and transit-oriented aspects of the area as attractive features.
“The Orlando market is currently undergoing tremendous growth,” said Colin Gillis, vice president of acquisitions, Southeast, for Passco. “According to a recent report by the U.S. Department of Labor, Orlando created more jobs than any other metropolitan area in the nation in 2015, ranking first for employment gains and second for population growth.”
He added that this acquisition is “a strong addition to our existing portfolio” as continued rapid job creation and the significant migration of workers to the area will drive demand for multifamily housing.
Job-seeking residents will have the benefit of being in the only multifamily property in the Florida Hospital Health Village, which offers more than 10,000 healthcare jobs, and living near major employment centers.
The community, just built in 2015 by Atlanta-based Wood Partners and local developer Ustler Development Inc., is also transit-oriented, situated along the I-4 corridor and within a five-minute walk from one of four downtown stops on Orlando’s 62-mile Sun Rail project. The Ivy will be even better positioned in the coming years, as the city of Orlando recently invested $8 billion in infrastructure and transportation projects, “inclusive of the Sun Rail commuter line and an expansion of the I-4,” Gillis said. “The Ivy’s location in close proximity to these major transit systems will drive demand for the property, providing an opportunity to deliver stabilized yields to our investors,” he added.
In addition to its location, The Ivy offers multi-level pool decks, a resort-style swimming pool and yoga studio, with shopping, dining and entertainment options nearby.
“There is no doubt that this asset is poised for strong rent growth,” Gillis said. He added that while the property has upscale amenities and strong urban appeal, the rents are actually well below market value.
“Overall, this property is well-aligned with our continued strategy of acquiring Class A assets with long-term appreciation potential in strong growth markets,” Gillis said.
Wood Partners will continue to act as property manager for the Ivy. CBRE Vice Chairman Shelton Granade represented Passco and the seller. Chris Black of KeyBank Real Estate Capital‘s Commercial Mortgage Group arranged Fannie Mae acquisition financing for Passco.
Images courtesy of Passco Cos. LLC