Creekwood Village North Apartments Sells For $11,800,000

ORLANDO, FL--Demand for Apartment investment properties remains high. During the condo boom of 2005, the seller of Creekwood Village North Apartments (photo top left) had planned to demolish the complex and build luxury condominiums.

In preparation, the seller began vacating the units early in 2006 . However, by the end of 2006 the condo market had cooled and with the property 70% vacant, the seller had abandoned plans to demolish and rebuild and thus began leasing the property back up as conventional apartments.

"Like many condo conversions in the Florida market, getting the occupancy back to market stabilization necessary to obtain financing and close the deal is a challenge many owners and buyers are facing" said Gerald Smith (photo at right) of Smith Equities Real Estate Advisors.

The 180 unit Creekwood Village North Apartments located in Altamonte Springs sold for $11,800,000.00. The buyer was PRG Real Estate Management Inc. out of Philadelphia.

PRG is a privately owned investor and manager with 36 assets and 8,400 units in 8 states. PRG specializes in value added assets, and intends to commence with a sizable capital improvement plan to reposition the asset. Gerald Smith and Robert Smith, (photo bottom right) both of Smith Equities Real Estate Advisors were the brokers in the deal.

According to Smith Equities Real Estate Investment Advisors, the metro Orlando area saw approximately 10,000 units re-enter the rental market over the past 18 months that had previously converted to condominiums.

“While this has caused a short term increase in vacancies and concessions in the past year, we see the market beginning to show signs of stabilization. We continue to see strong demand for apartments and expect that to continue as the market reaches equilibrium” said Gerald Smith.

The 180 unit Creekwood Village North Apartments consisted of (90) two bedroom one bath units averaging 850 sf and (90) two bedroom one and a half bath townhomes averaging 1000 sf.

"This was an excellent opporunity for the buyer to expand their operations in the Orlando market with a quality asset priced well below its replacement costs. We expect 2008 to be a very active year in multifamily transactions as more investors recognize the unique opportunities the market offers" said Smith.

For More Information, Call (407) 422-0704:
Gerald Smith at Ext: 103 Email: gs@amecs.com or
Robert E. Smith, CCIM at Ext 101 Email: res@amecs.com