DeBartolo, which is diversifying to more than retail development and investment lately, plans to put at least $10 million into rehabilitating the class B complex built in the mid-1990s. The all-cash deal was made with a lender that took over the property from its previous owner. Neither of those parties was named.
"It's in a class A location, so we want to make it a class A product," Ed Kobel, DeBartolo president and COO, tells GlobeSt.com. "For us in the apartment business, it's important to have a jobs creator nearby because it helps keep your apartments full."
Mystic Pointe, at 10712 Mystic Circle, is within three miles of Interstate 4 and adjacent to Disney World's employee entrance. The collection of theme parks and resorts west of Orlando is the largest single-site employer in North America, with more than 50,000 "cast members."
Upgrades to the apartments, which have one to three bedrooms each, will include new carpet, paint, appliances and fixtures, along with renovations to its fitness and media centers. Kobel says Mystic Pointe will get a Key West-style exterior similar to many of Disney's nearby properties.
Kobel notes that Mystic Pointe also benefits from proximity to the area's affluent Windermere community, which should help attract families seeking high-rated schools. Although apartment vacancy throughout the Orlando market currently measures 10%, it's within the middle single digits in Disney's submarket, he adds.
This marks DeBartolo's second apartment acquisition in the past month, having paid $28 million for the 379-unit Falcon Square complex in nearby Winter Garden. Since last fall it has invested $105 million in nearly 1,200 rental units, including three other complexes in Tampa, Fort Myers and Orlando.
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