ORLANDO—Carroll Organization just keeps betting on Orlando multifamily. After grabbing three multifamily assets at the end of the fourth quarter of 2015, the company squeezed in a final deal—this time it was a disposition.
Carroll just closed the sale of ARIUM Barber Park. Noteworthy is the fact that the 526-unit multifamily community was originally purchased in April 2013, and was Carroll's first in the Orlando market.
"Orlando's multifamily market is consistently performing and we wanted to take advantage of the market and the steady rent growth we were seeing," says M. Patrick Carroll, founder and CEO of Carroll. "Barber Park presented a unique opportunity to buy well below replacement cost and run our value-add repositioning program to improve overall performance. After two years of executing our business plan on schedule, our investment team saw an opportunity to sell, producing solid returns for our investors."
During the hold period, Carroll used three strategies to improve net operating income: reducing and controlling expenses, upgrading the amenities and interiors and enhancing the marketing efforts. Carroll upgraded both clubhouses on the property, as well as the fitness center, and added outdoor grilling areas at each pool.
Ultimately, Carroll drove organic rent growth of 16% while holding an average occupancy of 95%. Barber Park's renovated interiors include as stainless steel appliances, faux granite counter tops, and faux-wood flooring. The lakefront community is close to the East-West Expressway, Interstate 4, Orlando International Airport and several theme parks.
"This investment provided the opportunity to buy a well-located apartment community at an attractive basis and enhance property income through various value-add initiatives," says Robert Davies, principal with Townsend Group, the buyer. "Given Carroll's business plan execution and receptive market conditions, we realized an attractive return for our investors."
Central Florida's commercial real estate market may not see the same level of interest as South Florida, but it's certainly turning heads. From Orlando to Tampa and in submarkets along the Interstate 4 Corridor, Central Florida is attracting savvy investors and developers on the office, retail, multifamily and industrial front.
"As Central Florida has seen a flurry of activity this year, the job market continues to expand and unemployment rates are dropping," C. Lawson Dann, senior vice president of Avison Young in Orlando, tells GlobeSt.com. "As a result, the capital and investment markets continue to look attractive to institutional and private investors driving the multifamily, retail, office and industrial sectors."
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