ORLANDO, FL - Capstone Apartment

O rlando, FL
Multi-Family Market Summary & Activity Update
Summer 2014
ORLANDO
Contents
Introduction
Introduction2
Market Commentary
3
Economic Overview
4
Sales Transactions
5
Proposed Development
8
Why Choose Capstone?
10
Capstone Apartment Partners prides itself on the continual value contributions we are
able to offer our industry, and thus we produce periodic Multifamily Market Summaries to further
inform the clients and industry we serve. Capstone believes that this market snapshot will be
beneficial to current owners, operators, investors, and other industry professionals who are active
in the Orlando MSA, as well as others who are looking to break into this market.
Florida Team
Orlando Office
Tampa Office
2221 Lee Road  Suite 21 C  Orlando, FL 32789
208 N. Armenia Ave.  Suite B  Tampa, FL 33609
Enon Winkler
Deucie Bies
Jad Richa
Brian Hunsicker
Partner
407.616.0250
[email protected]
Investment Advisor
407.470.9030
[email protected]
Investment Advisor
727.282.5547
[email protected]
Investment Advisor
727.631.5870
[email protected]
2
ORLANDO
Tourism
Forbes List: #90 Best Places for Business and Careers.
One significant factor that sets Orlando apart is its remarkable quality of
life. Those who venture into Orlando beyond our world-famous tourist
attractions quickly realize that this is a uniquely “livable” community.
Distinctive, brick streets and tree lined neighborhoods; year-round outdoor
recreation; proximity to beaches, lakes, springs, parks and trails; worldclass entertainment options; professional sports; cultural events; closets
free of winter coats, scarves and gloves … all contribute to an environment
that most people never want to leave once they’ve called it home. In fact,
companies of all types and sizes find that our unparalleled quality of life
enhances employee recruitment and retention.
Once a quiet farming town, Orlando now welcomes more visitors than any
other place in the state of Florida. The reason, of course, is Walt Disney World,
which, along with Universal Orlando, SeaWorld Orlando, and a host of other
attractions, attracts millions of people a year to a previously featureless
plot of scrubland. Most of the hotels are found along International Drive,
Hwy-192 or in and around Disney World, all of which lie several miles south
of the downtown area, which has the city's best nightlife.
Nice Doing Business with You
The Orlando economy remains strong with the addition of over 6,000
jobs over the past six months and the unemployment rate has improved
to 6.0%. Strong economic industries for the region include health care,
manufacturing and tourism. The city of Orlando recently approved plans to
build a new $84 million Major League Soccer stadium. Lake Nona Medical
City is being called a new chapter in Orlando’s history. The 650-acre health
and life sciences park known as Lake Nona Medical City is a landmark for
Orlando and a premier location for medical care, research and education.
Class
Units
Lease-up
A (1-5 Years in Age)
B (6-15 Years in Age)
C (16-30 Years in Age)
C- (30+ Years in Age)
Stabilized Averages
Totals/Averages
4,939
6,106
41,317
59,235
26,982
6,106
8,068
Multi-Family Fundamentals
Demand for apartments has remained healthy with the region reporting
the absorption of 790 units over the past six months. The vacancy rate has
increased to 5.8%. This is due to the addition of 2,596 new units to the
market, which is the most recorded in ten years. Development activity
remains strong in the Orlando market. There are 4,655 units currently
under construction and an additional 6,481 proposed to be built. Although
the Central submarket, which includes the downtown area, has the most
construction activity, developers are active throughout the region. With
the introduction of new supply to the region the vacancy rate is expected
to rise moderately over the next six months.
Apartment Comparison by Class
Vacancy Rate
Avg. Sq. Ft.
38.0%
5.3%
3.6%
4.7%
5.9%
4.6%
5.8%
1,081
1,037
1,081
935
842
966
970
Avg. Rent
Avg. Rent/Sq. Ft.
$1,397
$1,302
$1,057
$886
$770
$934
$951
$1.29
$1.26
$0.98
$0.95
$0.92
$0.97
$0.98
Market Commentary
Quality of Life
3
ORLANDO
Employment
Orlando's cost of living is 8.50% lower than the U.S. average.
Employment / Economic Announcements
Economic Overview
 JetBlue, a national airline company, will be adding 500 new
jobs to its Orlando workforce when it opens its new call
center in the area.
 Lockheed Martin, a national defense contractor, is adding 200
high-paying jobs to its Orlando simulation and training unit.
The unemployment rate in Orlando is 5.20% which is lower than both state and
national averages (6.3% and 6.2%, respectively). Recent job growth is positive
having recently increased by 4.96%.
Major Employers (non-government)
Company
Industry
Rank
Employment
 Florida Hospital will add 260 new healthcare jobs when it
opens a planned 100-bed hospital in Apopka.
1
Walt Disney World
Tourism
66,000
2
Adventist Health System (Florida Hospital)
Healthcare
17,600
 Florida Hospital Kissimmee plans to add 300 new jobs when
it completes a three-story 94,000 square addition to its 83bed hospital. They plan to open the hospital in 2015.
3
Publix Super Markets Inc.
Grocery
17,521
4
Universal Orlando Resort
Tourism
16,000
5
Orlando Health
Healthcare
14,310
6
Walgreens Co.
Grocery/Retail
11,927
7
Lockheed Martin Corporation
Advanced Technology
7,000
8
SeaWorld Parks & Entertainment
Tourism
7,000
9
Darden Restaurants, Inc.
Food/Beverage Services
5,968
10
Starwood Hotels & Resorts Worldwide Inc.
Hospitality/Lodging
5,369
 TravelClick Inc, a tourism e-commerce company, is adding
150 new jobs in Orlando.
U
S Ambulance Corporation, an ambulance manufacturing
company, has plans to add 120 new jobs to its office in
Orlando.
 Voxx expects to create 74 new jobs by the end of 2015, 10
jobs in 2016 and 50 jobs in 2017.
Wages & Population
There are 1,042,150 employees in Orlando, Kissimmee, Sanford MSA earning a mean hourly wage of $14.13 and an average annual income of
$39,400. In comparison, the state and national annual income averages are $41,454 and $50,274 respectively. The overall cost of living index
in Orlando MSA is approximately 3% less the national index.
Historical Population
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Orlando-Kissimmee MSA
1,866,597
1,939,766
1,999,994
2,034,878
2,060,968
2,082,421
2,139,372
2,174,224
2,223,456
2,267,846
Florida
17,375,259
17,783,868
18,088,505
18,277,888
18,423,878
18,537,969
18,846,054
19,083,482
19,320,729
19,552,860
Source: U.S. Census Bureau
4
ORLANDO
Most Recent Sales Transactions 100+ Units
Community
City
Sale Date
Units
Sale Price
Price Per Unit
Turtle Oaks
1969
Leesburg
7/1/14
101
$4,900,000
$48,515
Commander Place
1996
Orlando
6/24/14
216
$14,800,000
$68,519
Arden Villas
1999
Orlando
6/11/14
336
$42,050,000
$125,149
Ridge Club
1993
Orlando
5/28/14
372
$12,185,000
$32,755
Maitland Gardens
1985
Orlando
5/1/14
324
$17,400,000
$53,710
Jasmine at Orlando East
1984
Orlando
5/1/14
296
$15,900,000
$53,710
Reserve at Rosemont
1984
Orlando
4/24/14
344
$9,000,000
$26,163
The Majestic of Baldwin Park
2004
Orlando
4/10/14
177
$19,000,300
$107,346
Oak Forest
1989
Ocoee
4/1/14
408
$27,100,000
$66,422
Park 9 (fka Riverfront)
1997
Orlando
3/25/14
356
$29,350,000
$82,444
Oakwood Commons
1968
Orlando
3/17/14
335
$13,400,000
$40,000
Castle Woods
1992
Casselberry
3/1/14
302
$17,700,000
$58,609
San Rocco
1997
Orlando
2/10/14
172
$12,375,000
$71,948
The Harbor at Lake Howell
1990
Casselberry
2/1/14
408
$40,000,000
$98,039
Bella Vita Place
1995
Orlando
1/7/14
192
$11,616,000
$60,500
Cricket Club
1994
Orlando
1/1/14
248
$14,850,000
$59,879
Dorado Apartments
1972
Kissimmee
12/31/13
367
$16,750,000
$45,640
Windrift
1986
Orlando
12/26/13
288
$20,475,000
$71,094
Misty Oaks
1983
Orlando
12/20/13
250
$9,440,000
$37,760
Courtney Chase
2002
Orlando
12/18/13
288
$38,000,000
$131,944
The Carrington at Four Corners
2001
Clermont
12/1/13
440
$20,800,000
$47,273
Sales Transactions
YOC
5
ORLANDO
Most Recent Sales Transactions 100+ Units
Sales Transactions
Community
YOC
City
Sale Date
Units
Sale Price
Price Per Unit
Bala Sands
2002
Orlando
11/26/13
298
$36,300,000
$121,812
Bella Lake
1973
Orlando
11/26/13
296
$18,500,000
$62,500
Falcon Pines
2006
Orlando
11/22/13
300
$31,500,000
$105,000
Monte Vista Apartments
1989
Orlando
11/14/13
360
$30,600,000
$85,000
Reef Club
1992
Kissimmee
11/12/13
560
$31,670,000
$56,554
Mission Pointe
1994
Orlando
11/7/13
248
$14,880,000
$60,000
Applewood Apartments I & II
1982
DeLand
11/6/13
157
$3,300,000
$21,019
Boca Vista
1985
Altamonte Springs
11/1/13
324
$22,700,000
$70,062
Sky Pines Apartments
1986
Orlando
10/31/13
140
$2,800,000
$20,000
Branchwood
1981
Winter Park
10/31/13
117
$4,100,000
$35,043
Wingwood
1980
Orlando
10/31/13
86
$2,700,000
$31,395
West Winds
1983
Orlando
10/25/13
272
$15,749,882
$57,903
Landmark at Wood Trace
1988
Casselberry
10/19/13
384
$26,800,000
$69,792
Millenia West
1986
Orlando
10/17/13
200
$10,210,000
$51,050
The Preserve at Spring Lake
1974
Altamonte Springs
10/4/13
194
$6,790,000
$35,000
The Lexington at Winter Park
1971
Winter Park
10/4/13
208
$5,210,000
$25,048
Douglaston Villas & Townhomes
1980
Altamonte Springs
9/24/13
234
$16,750,000
$71,581
Regency Oaks I&II
1968
Fern Park
9/24/13
343
$13,800,000
$40,233
Sun Club
1973
Kissimmee
9/13/13
128
$6,126,000
$47,859
River Reach
1994
Orlando
9/1/13
300
$15,600,000
$52,000
Nassau Bay (fka Brittany at Rosemont)
1996
Orlando
8/27/13
492
$39,300,000
$79,878
Village Lakes II
2004
Orlando
8/12/13
216
$12,042,100
$55,750
6
ORLANDO
Average Year of Construction
Average # of Units Per Transaction 308
310
2000
300
290
1995
292
1990
Class A
279
264
260
Class C
1980
AVERAGE
1975
Class A
Class B
Class C
1976
AVERAGE
1970
250
240
1988
1985
Class B
270
1991
1965
Class A
Class B
Class C
1960
AVERAGE
Class A
Average Transaction Sales Price
$30,000,000
AVERAGE
$120,000
$23,341,643
$100,000
$95,671
$20,517,578
$20,000,000
$12,113,156
Class B
$60,000
Class C
AVERAGE
$10,000,000
$74,743
$80,000
Class A
$15,000,000
$69,109
Class A
Class B
$45,802
Class C
AVERAGE
$40,000
$5,000,000
$0
Class C
Average Price Per Unit
$26,292,240
$25,000,000
Class B
Sales Transactions
280
2003
2005
320
$20,000
Class A
Class B
Class C
AVERAGE
$0
Class A
Class B
Class C
AVERAGE
Class A represents properties built from 2000-2014, Class B includes properties constructed from 1985-1999, and Class C signifies properties constructed in 1984 or earlier.
Averages are based on sales of 100+ units during the years of 2013 and 2014.
7
ORLANDO
Developer
Rida Associates
Submarket
Central Station
280
N. Orange and Amelia St.
Central
Courtney at Lake Shadow (Additional Phase)
249
S. Keller Rd. near West Kennedy Blvd.
Central
Trade Street Capital
Estates at Maitland
420
N. Orlando Ave. and E. George Ave.
Central
Jefferson Development Partners
Jefferson Lake Eola
299
Church St. and Mariposa St.
Central
Residences at Winter Park Village
204
N. Denning Dr. and W. Canton Ave.
Central
The Sevens
325
N. Orange Ave.
Central
Station House
200
W. Lake Mary Rd. and Old Lake Mary Rd.
North
Grandville at Town Center
244
Doran Dr.
Northeast
Heritage Village
201
Longwood St. and Orange Ave.
Northeast
The Courtney at Universal
355
Destination Pkwy. and Universal Blvd.
South-1
Bristol Lakes
346
International Dr. near Westwood Blvd.
South-2
Broadstone Gateway
360
Shadowridge Rd. and N. Frontage Rd.
Southeast-1
Grandville at Jubilee Park
330
Hazeltine Rd. and Goldenrod Rd.
Southeast-1
Colonial Properties
Colonial Grand at Randal Lakes (Additional Phase)
316
Randal Park on Dowden Rd.
Southeast-2
Boyd Development
Hamlin
300
New Independence Pkwy.
Southwest-2
Debartolo Holdings
Retreat at Windermere (Additional Phase)
148
Bridgewater Crossings Blvd.
Southwest-2
Park Place at Maguire
242
Maguire Rd. and Tomyn Blvd.
West
Contravest
Proposed Development
Communities Proposed (100 Units and Above)
Community
Units
Road/Intersection
Epoch Properties
Pizzuti Construction
Epoch Properties
Lecessee Development
Orange Crown Companies
Contravest
Flournoy Development
Alliance Residential
Lecessee Development
Skorman Construction
The Sevens
Grandeville at Town Center
Colonial Grand at Randal Lakes
8
ORLANDO
Contravest
Submarket
Courtney at Lake Shadow
249
Keller Rd.
Central
Gallery at Mills Park
310
N. Mills Ave.
Central
Ustler Development
The Ivy
248
Dade Ave.
Central
GDC Properties
NORA
246
Orange Ave.
Central
Azul Baldwin Park
178
Lower Park Rd.
East-1
Park Place
275
City Plaza Way
East-2
American Housing Communities
Plaza on University
364
University Blvd.
East-2
Landmark Properties
Retreat at Orlando
221
E. Colonial Dr.
East-2
Colonial Grand at Lake Mary
132
Sunlight Ln.
North
Elan Town Center
360
Solstice Loop Rd.
North
Solara
136
Cherry Laurel Dr.
North
Epoch
Station House
200
E. Crystal Lake Dr.
North
Faison
Evander Square
189
Latta Dr.
South-2
Epoch
Sea Isle Resort
202
Sea Coral Dr.
South-2
Art Avenue
240
Lee Vista Blvd.
Southeast-1
Colonial Grande at Randal Lakes
148
Randal Park Blvd., South
Southeast-2
Sanctuary at Eagle Creek
268
Narcoosee Rd.
Southeast-2
Reteat at Windermere
146
Nature View Dr.
Southwest-2
Rialto
200
Sandlake Dr.
Southwest-2
Debartolo Development
Legacy Development Partners
PAC Land Development
Mid-America Apartment Communities
Greystar
Bristol Development
Rhodie Group
Mid-America Apartment Communities
Emerson International
Debartolo Holdings
Wood Partners
Solara
Courtney at Lake Shadow
Elan Towne Center
Communities Under Construction
Developer
Communities Under Construction (100 Units and Above)
Community
Units
Road/Intersection
9
ORLANDO
Carolinas
Georgia
Virginia
Tennessee
Kentucky
Alabama
Florida
West Virginia
Why Choose Capstone?
The People Sell the Deal
Capstone’s Southeast & Mid-Atlantic Investment Sales Team is among the market leaders within our industry sector
and respective region. We place client service above all else, and can guarantee that no one else will work smarter and
harder in achieving the highest level of results for our clients. We don’t rely on a logo to sell the deal, but rather utilize
the industry expertise and investment acumen, tremendous drive and work ethic, and unbeatable salesmanship of
the team members assigned to each project. At the end of the day, it’s the individuals that drive value and sell the deal,
and we know the capabilities of our individual team members are second to none.
Market Expertise & Product Niche
Capstone sits atop the private capital sector of multi-family investment sales for multiple reasons. Our deliberate and concentrated focus
and expertise in not just the primary markets of the Southeast & Mid-Atlantic, but also the secondary and tertiary markets within our region,
identifies us as the ideal candidate for such assignments. Capstone’s investment sales team has completed a multitude of transactions
across the primary, secondary, and tertiary markets of the Southeast & Mid-Atlantic, and our track record of success can be attributed to our
comprehensive coverage and expertise among these markets, as well as our relationships with the owners and investors who remain active
in this environment.
National Exposure via Cutting Edge Technology
Capstone has developed and maintains industry leading national databases, expansive information delivery methodologies, and various
proprietary activity tracking systems. These tools are utilized daily by the investment sales team, analysts, and back-office support staff
allowing for optimal operational efficiency. This enables Capstone’s investment brokerage team to spend nearly all of its time servicing clients,
interacting with industry players and active asset traders, and promoting transactions.
Reputation and Results
Capstone prides itself on its impeccable industry reputation and the core values and behaviors of the firm that drive daily operations. The
firm possesses an unblemished reputation and track record industry-wide, and, as such, the firm’s trusted relationships among the apartment
investment community continue to facilitate seamless, fluid, and successful sales transactions.
** Information in this report has been provided by the following resources: The Orlando Real Data Report April 2014, REIS Report, Costar, Forbes.com, The Orlando Business Journal, Metro
Orlando Economic Development Commission, Lexis Nexis, Harris InfoSource, Direct Company Contact, OBJ Book of Lists 2013, Loopnet, U.S. Census Bureau, Bureau of Labor Statistics, county
tax records, and various multi-family industry contacts. Cover Photo by Martin Lopatka from www.flickr.com/photos/apothecary/14067725639.
10