ORLANDO-The Fountains at Waterford Lakes has traded for $37 million, or $92,000 per unit. Built in 2000, the property offers 400 units near the University of Central Florida. The asset is 90% occupied.
Shelton Granade and Luke Wickham of CB Richard Ellis’ Central Florida Multi-Housing Group exclusively represented the seller, Rockville, MD-based Bresler & Reiner. Bresler & Reiner originally bought the units in 2003. Centennial Holding Company acquired the property and was represented in house.
“If you look at the NOI on this deal now and where it was a few years ago in a better market, it’s evident that the market has clearly been depressed,” Granade tells GlobeSt.com. “Rents have been down. Concessions have been high. But there’s tremendous job growth around UCF. The neighborhood has always been strong, and it’s getting even better.”
Granade says there were more than 20 offers on the asset. As he sees it, both the Orlando economy and the Orlando multihousing market are improving. He reports rents are getting healthier by the month. And although Centennial opted for a Freddie Mac loan, Granade says other competitive options are emerging for multifamily.
“We have seen recently some of the life companies, CMBS lenders, come back into the market in Orlando for multifamily and they are getting pretty aggressive,” Granade says. “So we’ve also done a couple of life company deals on the debt side.”
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