ORLANDO-Archstone, the Englewood, CO-based REIT, has sold its Archstone Altamonte Springs development to Title Properties of Colorado for $15.1 million, according to Charles J. Foschini, vice chairman of CB Richard Ellis’ Debt and Equity Finance and Institutional group in Miami, who, along with team members, arranged for $10.6 million in acquisition financing through Freddie Mac for the 224-unit property. The loan has a loan-to-purchase price of 70%, a 10-year term, 30-year amortization and a favorable, fixed-interest rate.

Although it may seem as if all multi-family sales today are distress sales, in fact, says Robert Given, CB Richard Ellis executive vice president in Miami, who also worked on the Archstone deal, about 60% of multi-family sales today are non-distress sales in South Florida and probably other areas of the state, including Orlando. “Of the 40% which are distressed, they are typically fractured condos or REO projects,” he says.

“It was an opportune time to sell,” says Foschini, referring to the Archstone Altamonte Springs sale. “There is a scarcity of premium apartment complexes and this one is a B-plus property, which was well-maintained by its institutional owner,” he says. The Altamonte Springs property features a swimming pool, clubhouse, car wash area, tennis courts, and frontage on Lake Orienta. Plus, says Foschini, the neighborhood is one of the more desirable submarkets in Orlando.

The multi-family market is improving, says Given. “We’ve seen cap rates on conventional properties compress about 100 basis points since last October and November.” There is continued downward pressure on cap rates, because of the scarcity of quality product and there is no multi-family development in the pipeline, he says. “There is also a general consensus that we’ve hit bottom with regard to job losses and in rental erosion.”