Avanath Capital Management has announced the $62.5 million acquisition of City View, a mixed-use, mixed-income development in Orlando, Florida.
The firm used a combination of its commingled fund equity and financing from JPMorgan Chase and Fannie Mae.
“This acquisition presents a rare opportunity to add a quality asset to our portfolio in a flourishing market, where Avanath is well positioned to create value and contribute to the local community,” said Daryl Carter, founder, chairman, and CEO of Avanath. “With this investment, we will preserve much-needed affordable housing while elevating the quality of resident living spaces and common areas, as well as improving the retail spaces to serve the needs and interests of the growing Downtown Orlando market.”
Sold by the Orlando Neighborhood Improvement Corp., the 266-unit property has 131 designated affordable apartments with rent restrictions continuing until 2050. There are 28 units at 50% of the area median income (AMI), 79 units at 60% of the AMI, and 24 units at 120% of the AMI, according to officials.
City View, which is 96.9% occupied, features a mix of one- and two-bedroom units with amenities including 9-foot ceilings, in-unit laundry, and central HVAC. In addition, there is a state-of-the-art fitness center, a business center, and two resident lounges.
The acquisition of City View brings Avanath’s current Greater Orlando portfolio to six properties totaling more than 1,500 units at a time when growth trends in the region continue.
“We’ve seen some of our highest property performance in Greater Orlando in recent years,” said John R. Williams, president and chief investment officer at Avanath. “Our team identified the opportunity to create additional scale and efficiency through building our portfolio in this region as it continues on a strong growth trajectory.”
Avanath plans to complete interior renovations of the market-rate units to bring finishes and rents in line with those of market competitors. Additionally, the firm will upgrade common areas and retails spaces and replace the roof, HVAC, and boiler, given the property’s age of 15 years.
“Through these improvements, we can generate additional revenue that will create sustained opportunity to provide top-quality housing at both market rate and affordable rents,” said Williams in a statement.
City View also features nearly 25,000 square feet of retail space. The tenant mix of its 13 storefronts includes boutique retail, restaurant, deli, financial education/literacy, and the Orlando Police Department. The retail spaces are also experiencing demand from start-ups, minority-owned businesses, boutiques, and regional businesses, according to the new owners.
The development is within walking distance from downtown restaurant, retail, and entertainment options. The community’s location also includes the rich history of the historic Parramore District. Known as a thriving black community filled with successful businesses in the early 20th Century, the Parramore District’s entertainment and social impact is still relevant today.