CHICAGO, IL - Chicago-based Origin Investments along with its joint venture partners Duncan Hillsley Capital and GPC Partners have completed the disposition of the 396-unit Rosehill Preserve apartment complex, 5870 Sundown Circle, in Orlando, FL. The sale of the property, to Bridge Investment Group, was facilitated by Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI).
Rosehill Preserve is a Class B+ apartment community comprised of one and two-bedroom units. The garden style community, developed on 35 acres in 1984, consists of 20 buildings. The complex features best-in-class, hospitality-themed amenities that include two pools, a master clubhouse, separate resident lounge, large gym, multiple dog parks and pedestrian trails along a water-filled preserve.
In Spring 2019 Origin acquired a majority interest in the property through a recapitalization and helped to execute the final stages of a comprehensive modernization program designed to update units, improve occupancy and increase rents.
“The success of this investment reflects that the best exit strategy can be substantially shaped by the execution of an excellent acquisition strategy,” says Marc Turner, Managing Director of Investment Management, Origin Investments. ”We’re proud of the work we did with Duncan Hillsley and GPC Partners, that resulted in a great investment for Origin’s partners.”
Duncan Hillsley, which acquired the asset in 2017, completed significant capital renovations including substantial improvements to the clubhouse, landscaping, amenities, and roughly 85% of the interior units. Origin completed a significant number of the remaining interior unit renovations which resulted in a commensurate increase in in-place rents. Over the course of the hold period, Origin increased Revenue/SF by 14.8%.
“The Orlando area is witnessing incredible expansion as the local economy reopens,” said Shelton Granade, IPA executive managing director. “Employment growth is projected to outpace the nation’s and Orlando’s five-year job growth forecast ranks it as the No. 2 metro in the nation.” Granade and IPA’s Luke Wickham, Justin Basquill, and Sean Williams represented the seller, Duncan Hillsley Capital, GPC Partners and Origin Investments, and procured the buyer, Bridge Investment Group. The sale was concluded after a broad marketing and competitive bidding process which included 200 signed confidentiality agreements, 21 property tours.
For Origin, the sale price is a 38.4% increase over its 2019 purchase price. For the 26-month hold period this projects to a 35% gross IRR and 1.88x gross multiple.
Rosehill Preserve is the benefactor of an ideal, central location with great accessibility. With close proximity to 436, 408 and 528, the complex is within approximately six miles of Downtown Orlando and Orlando International Airport, and conveniently located to Lake Nona; job corridors such as Disney/Universal, Healthcare Centers and substantial service sector employment; and the vast shopping, dining and the extensive entertainment options Orlando offers.
“Adding Origin Investments as part of the investment team represented a great move to help take our investment in Rosehill Preserve to the next level, for the benefit of all involved,” adds Shane Hillsley, Managing Director, Duncan Hillsley. “We look ahead for additional opportunities to collaborate and add value in the multifamily sector.”