Orlando Continues to Enjoy Economic Growth from Real Estate Investment in the Area
2018 promises to be an exciting year for commercial and residential real estate. In Orlando, and across the Central Florida region as a whole, new acquisitions, renovations and new construction are continuing to drive opportunities and economic growth.
Keep reading to learn more about the latest developments in the Central Florida area, and what they mean for the multifamily market.
$14 Million Upgrade of Cocoa Beach Resort
Westgate Resorts is one of Central Florida’s largest privately held companies, with $1.24 billion in 2016 revenue. They acquired the 120-room Wakulla Suites resort in Cocoa Beach as part of an overall plan to revitalize the town’s pier attraction, also a Westgate asset. The renovation of Wakulla Suites is due to be completed by summer 2018 and will feature upgraded condos, a tropical-themed water park, and a 3,500 sq ft meeting space with views of the Atlantic Ocean.
“We have invested over $35 million in projects in the Cocoa Beach community,” says Westgate CEO David Siegel, “because we believe this is the premier beach destination in Florida.”
Such strong investment from a prosperous Central Florida company in Cocoa Beach will boost the area’s economic growth, as well as creating new jobs and increasing the demand for multifamily units. Learn more about the plans and see what the completed renovation will look like here.
Starwood Acquires $600 Million Portfolio in Florida
Starwood Property Trust, a leading real estate finance company with assets worth over $12 billion, recently signed a deal to acquire a sizable affording housing portfolio in Florida. The acquisition is comprised of 28 properties and 6,185 units, and brings Starwood’s affordable portfolio to over 15,100 units.
The majority of the portfolio is located in Orlando, with smaller amounts in metro Tampa, West Palm Beach and Miami. Starwood Chairman and CEO Barry Sternlicht said the markets were chosen because of their “strong fundamentals”. He cited the region’s persistent supply-demand imbalance for affordable housing as a good reason to proceed with the acquisition.
Starwood’s investment in this asset class shows a strong demand for workforce housing in the Orlando market. You can learn more about the deal here.
$89 Million Luxury Apartments Coming to Downtown Orlando
A 320-unit apartment complex will begin construction in Orlando in the second quarter of 2018. The 13-story development will stand on the vacant southeast corner of North Rosalind Avenue and East Livingston Street, and is due for completion by the end of 2019. The property is anticipated to feature a six-story parking garage, pool deck and 12,000-14,000 sq ft of ground floor retail.
Development Director Tom Suminski of Banner Real Estate Group has identified the downtown area as a growth market, and chose this site because he “liked Orlando’s strong job and population growth.”
The area boasts a 93.4% apartment occupancy rate, and average monthly rents are up $238 from 2016 ($1,381 vs. $1,143). Employers in the region are forecast to expand the local workforce by 4.4 percent, driving economic growth and attracting more millennials, who tend to prefer apartment living to single-family homes. Continued rent growth and increasing demand for apartment units is great news for investors who own multifamily assets in downtown Orlando and the surrounding areas. You can learn more about the development here.
Local developments like these are encouraging signs that the Orlando and Central Florida real estate markets are continuing to gain momentum. The news for multifamily investors remains positive: continued economic growth is creating more jobs and bringing more demand for multifamily housing to the Central Florida region.
The team at 100Units.com has helped thousands of clients close more than $100 million in multifamily property transactions. Learn more about what we offer here.
Our blog is packed with the latest development news, plus expert advice from our multifamily property advisors. For more multifamily investor insights and new property tours, visit our YouTube channel.