CBRE Arranges Second-Largest M-F Sale in Greater Orlando in 12 Months
- Jan 22, 2015
Ecoventures Capital Fund, L.L.C. has acquired Sun Lake Apartment Homes, a 600-unit luxury apartment community in Lake Mary, Fla., from Harbor Group International for $66.25 million.
The transaction represents the second largest apartment complex sale in Greater Orlando in the past 12 months. CBRE Capital Markets arranged the sale on behalf of the seller.
“There’s definitely been an increasing appetite for larger transactions. Sun Lake is a big deal—600 units and $66 million-plus. That provides great efficiencies at the site level and the opportunity for investors to get out larger chunks of capital,” Shelton Granade, CBRE’s senior vice president within its Investment Properties Group, told Commercial Property Executive. “That’s been a rising trend in Orlando—investors are seeking opportunities to place $50 million to $150 million.”
Located at 420 Sun Lake Circle, Sun Lake is comprised of 26 two-and three-story residential buildings and a clubhouse with fitness and business centers. Originally constructed in 1988, it has undergone more than $10 million in capital upgrades over the years. HGI had owned the property since 2012.
According to Granade, new ownership is expected to continue making modest upgrades, adding more faux wood flooring, granite counters, etc., over time to increase the rents.
Sun Lake is located on Greenwood Lake, and is within minutes of one of Orlando’s largest white-collar employment hubs as the Lake Mary/Heathrow, Primera, and Northpoint Office Parks are all within one mile of the community.
“There are only a few apartment communities in Orlando that are on real lakes—having water views and the ability for tenants to fish, swim, or paddle board is unique,” Granade added. “Even more important though was the proximity to great employment, high-end retail, and highly rated public schools. The demographics in this pocket are very strong, which provides investors comfort that they can continue to increased NOI over time.”
The property was 96 percent occupied at the time of the transaction.