We’ve invested approximately $5.7 million in the construction of a 384-unit apartment community in Odessa, Florida, a northern suburb of Tampa. The property is part of the Starkey Ranch master-planned development, which is expected to include 4,000 single-family homes, as well as a K-8 school and a retail center with a grocery store, directly adjacent to an 18,000-acre nature preserve.
Business plan
Construction is expected to kick off in the coming months. Once construction is complete, the sponsor plans to lease the property up. Once it is fully stabilized, they plan to obtain long-term financing and pay back our investment.
Why we invested
- Attractive margin of safety: The sponsor has approximately $21.2 million of equity which is junior to our position. They would have to lose their entire investment before our principal was threatened.
- Strong relationship with experienced partner: This is our fourth investment to date with Waypoint Residential, a national real estate firm specializing in the acquisition, development, and management of apartment communities. Waypoint has invested over $2 billion across more than 20,000 multifamily and student housing units.
- Rapidly-growing market: Along with the rest of Florida, the Tampa area has experienced consistent growth over the past several years. According to a January 2018 report from real estate firm Cushman and Wakefield, the Tampa metro area population is expected to add 100,000 residents in 2018 alone.
