We’ve partnered with an experience real estate owner to acquire the Aspect Apartments, a 432-unit apartment complex in Kissimmee, Florida, just south of Orlando. Constructed in 2010, the garden-style apartment complex is currently 96.75% occupied. At $18.2 million, this project is our single largest commitment as of May 2018. This investment is part of our broader strategy of investing in stabilized apartment complexes in fast-growing areas around the country.
Business plan
Our partner, American Landmark Apartments, plans to perform common area and unit improvements aimed at raising rents, and the overall property value. Our goal is to earn consistent cash flow over the duration of our hold period, with the potential for long-term upside by selling the property for more than we paid for it.
Why we invested
- Experienced partner: Based out of Florida, American Landmark Apartments is a national real estate operator with extensive experience in managing apartment buildings. They operate over 23,000 units across the southeastern region of the US.
- Strong local economy: Anchored by Disney, Orlando has seen consistent job growth in the leisure and hospitality sector. However, the nearby Kissimmee is also becoming a formidable area for technology and manufacturing with the addition of a $75 million research facility that opened last year. A 2018 Forbes report named the Orlando-Kissimmee-Sanford area as the fourth fastest-growing city in the country.
- Income-generating asset: The apartment complex is near full occupancy, generating consistent cash flow through rental income. We intend to complete minor renovations to boost rents and the potential value of the property.
