TruAmerica Multifamily has acquired Island Club, a 472-unit Class B apartment community in Orlando, FL in a $64 million transaction.
TruAmerica identified the Orlando MSA as its top target market in Florida after entering the state in 2017. The Island Club is TruAmerica’s seventh asset purchase in Orlando and boosts the Los Angeles-based real estate investment firm’s Florida holdings to more than 4,200 units. Other assets are located in Boynton Beach, Fort Myers and Tampa-Clearwater.
“We continue to look at opportunities and build upon our already significant presence in the greater Orlando area,” said TruAmerica Co-Chief Investment Officer Matthew Ferrari, who oversees the firm’s acquisition team. “Orlando continues to experience phenomenal job growth, with more than 52,000 jobs having been created in 2018 and 30,000 more expected in 2019, and exhibits some of the strongest multifamily fundamentals in the United States. TruAmerica and our investors certainly want to be here in a big way.”
Island Club benefits from a prime location in the desirable Metro West submarket, less than five miles from Downtown Orlando. Located at 1401 S. Kirkman Road, the property sits across the street from Valencia College, the third largest community college in the State of Florida with more than 26,000 students and nearly 1,000 faculty and staff. Other major employers located nearby include Universal Orlando Resort, the second largest employer in Orlando with 21,000 jobs, and the Orlando Heath Regional Medical Center, the seventh largest hospital in the U.S. with 14,000 employees and staff.
Built in 1990, Island Club is a gated community featuring a mix of one-, two-, and three-bedroom apartment homes located on a low-density 42-acre site. All homes feature walk-in closets, ceiling fans, full-size washers and dryers, and a patio or balcony, while select homes feature vaulted ceilings and fireplaces. Common area amenities include two lakes, two large resort-style swimming pools, two resident clubhouses, business center, bark park, lighted tennis court and picnic and barbecue areas.
With only 31 of the 427 apartments having been renovated by the seller, Island Club represents a strong value-add opportunity for TruAmerica, which will begin renovating apartment interiors through normal apartment turnover. Other improvements will include upgrading community amenities including pool areas, clubhouses, fitness centers and landscaping.
Shelton Granade, Luke Wickham and Justin Basquill from CBRE’S Orlando office represented the seller in the transaction.
TruAmerica’s investment will benefit from 10-year Freddie Mac debt financing, that is interest only for the first five years of the term. The financing was arranged by the CBRE Capital Markets team led by Vice Chairman and Managing Director Brian Eisendrath.