The Orlando multifamily market may have an appearance of being oversupplied and on shaky ground, but it is actually thriving and has a long runway for growth ahead. The Orlando MSA has an inventory of approximately 165,000 rental units and about 10,000 units under construction. While that new supply approaches historical high-water marks, the lack of inventory of entry-level, single-family homes and the complexion of the household formation leads us to the conclusion that we are undersupplied in the multifamily space. That being said, within the overall numbers there is likely an oversupply of Class A inventory and an undersupply of workforce housing. Vacancies are hovering in the 6 percent range and rent growth has slowed to around 3 percent after having stronger years. The undersupply of workforce housing is being exacerbated by the value-add business model being employed on most of the Class B and C buyers over the last five years, catapulting the average rents and straining the ability of the working-class to keep rent as a percentage of income at a healthy level. Overall, single-family homebuilding is at a 10-year high, but still well below the pre-recession days. Permits are also soaring, but the makeup of the …
CHATTANOOGA, TENN. — CBL Properties and Vision Hospitality Group Inc. have broken ground on a 135-room Aloft by Marriott in Chattanooga. The project is part of a redevelopment plan for a former Sears location at Hamilton Place mall. Aloft Chattanooga Hamilton Place will be located between The Cheesecake Factory and the future Dave & Buster’s. Amenities will include an urban-inspired design with loft-like guestrooms featuring nine-foot ceilings and keyless entry using a smartphone or Apple Watch. The hotel will be situated about 12 miles east of downtown Chattanooga.
CHARLOTTE, N.C. — Konover South LLC has acquired a six-acre parcel for $4.8 million with plans to develop a 32,000-square-foot retail center. Located near Charlotte Premium Outlets, Freeman Retail Crossing will include a national steak restaurant, banking, mobile services and healthcare tenants. Konover South plans to break ground in early 2020 and expects to deliver Freeman Retail Crossing in the second quarter of 2021. The land is located on Steele Creek Road near I-485 in southwestern Charlotte.
CAPE CORAL, FLA. — Marcus & Millichap has arranged the $14.3 million sale of Towers I and Towers II, a 72,453-square-foot retail property in Cape Coral. The asset, located at 2612-2708 Santa Barbara Blvd., was 89 percent leased at the time of sale to tenants including Five Guys Burgers & Fries, Firehouse Subs, Sylvan Learning of Cape Coral, Anytime Fitness, Sumaq Peruvian Cuisine Bar & Grill and Tony’s Jewelry. Jim Shiebler, James Garner and James Medefind of Marcus & Millichap represented both the buyer, a private investor, and the seller, a personal trust, in the transaction.
CLERMONT, FLA. — Hunt Real Estate Capital has provided a $53 million Fannie Mae refinancing for Vista at Lost Lake, a 468-unit, garden-style apartment community in Clermont. The undisclosed borrower has made renovations throughout the property, including adding a clubhouse, fitness center and leasing center. The borrower plans to make several more upgrades with the new loan. Vista at Lost Lake offers one-, two- and three-bedroom floor plans. Communal amenities include two swimming pools, a maintenance shop, central mailbox center, and a clubhouse, which contains a community room, kitchen, fitness center, guest center, game room and indoor basketball court.
ORLANDO, FLA. — Preferred Apartment Communities Inc. has provided a $10.9 million investment loan for TDK Development’s Vintage Horizon West project. Vintage Horizon West is a planned 340-unit multifamily property in Orlando’s Horizon West neighborhood. With the investment, PAC will have the option to acquire the community following stabilization. The property will offer one-, two- and three-bedroom floor plans. TDK expects to complete the project in two years.
BERKELEY, CALIF. — A joint venture between The Dinerstein Cos. and Harrison Street has acquired six student housing communities located near the University of California, Berkeley. Equity Residential sold the properties for an undisclosed price. Acquisitions include The Berkeleyan, Renaissance Villas, ARTech, Touriel, Fine Arts and Gaia. The properties have been rebranded The Sterling Berkeley Collection, and renamed Sterling Addison, Sterling Allston, Sterling Haste, Sterling Jefferson, Sterling Oxford and Sterling University Ave.
ALISO VIEJO, CALIF. — AEW has completed the sale of One Enterprise, a Class A office building located in Aliso Viejo. BDC, a private 1031 exchange buyer, acquired the asset for $59 million. Situated on 7.3 acres, the four-story property features 111,391 square feet of office space. Built in 1999, the asset recently underwent a renovation. Microsemi Corp. and Ambry Genetics occupied the property at the time of sale. The property features a first-floor lobby, large corporate boardroom, executive kitchen, cafeteria and gym with locker rooms and showers, as well as landscaping and panoramic views of the Saddleback Valley. Paul Jones, Kevin Shannon, Brunson Howard, Blake Bokosky and Brandon White of Newmark Knight Frank (NKF) represented the seller, while Nick Kucha, also of NKF, represented the buyer in the deal
GLENDALE, ARIZ. — SRS Real Estate Partners’ Investment Properties Group has arranged the sale of Glendale Galleria, a neighborhood shopping center located at 5880 W. Peoria Ave. in Glendale. Brixmor Property Group sold the asset to a Florida-based private investor for an undisclosed price in a 1031 exchange. Built in 1989/1990 and renovated in 2018, the 119,525-square-foot property is situated on 12.7 acres. At the time of sale, the shopping center was 87 percent occupied by major tenants including LA Fitness, Sears Outlet, Synergy Gymnastics and TitleMax Title Loans. Additionally, the asset has four outparcels, which were not part of the sale. Outparcel tenants include Applebee’s, Arby’s, a car wash and Manuel’s Mexican Restaurant. Chris Tramontano and John Redfield of SRS represented the seller in the deal.
ALBUQUERQUE — Seattle-based Thayer Manca Residential has entered the New Mexico market with the purchase of two multifamily properties in Albuquerque: Ventana Canyon and Presidio. The acquisitions, combined with renovation costs, resulted in a total investment of $60 million. Formerly Ventana Canyon, the 264-unit Circ Apartments is in its final phase of a more than $4.1 million renovation project. Upgrades included a reimagined clubhouse, expanded pool deck and outdoor amenities, upgraded 24-hour fitness facility, new landscaping, interior unit renovations, exterior paint and property rebranding. The asset was originally acquired in November 2018. Ottavo Apartments, previously Presidio, is a 200-unit property undergoing a $4 million renovation plan, which is nearing completion. Upgrades include a contemporary clubhouse, upgraded 24-hour fitness center, fully updated community kitchen and game area, new pool deck, the addition of package lockers, property rebranding, exterior paint refresh and interior unit enhancements. The property was originally acquired in August 2018.