TerraCap Management LLC, a privately held investment firm with its headquarters in Naples, Florida, has acquired Bridgewater Apartments.
Located off Conway Road in Orlando, Bridgewater totals 344 units and features one- and two-bedroom units. The property’s amenities include a fitness center, swimming pools, a dog park, and soccer/tennis courts. The property is located minutes from both Orlando International Airport and downtown Orlando.
Steve Hagenbuckle, Founder and Managing Partner of TerraCap said, “This acquisition is consistent with our thematic approach of buying well-located workforce housing in high demand growth markets known for in-migration and employment growth. We are excited about the potential upside of this investment.”
Bridgewater has value-add potential due to below market rents that can be increased through both natural rent growth and premium renovations. The property can be repositioned through both exterior and interior renovation programs.
“We see this community as a prime candidate for our value-add strategy; attention to operational details combined with interior and exterior upgrades and added amenities can reposition this asset to provide residents with a better environment,” said Albert Livingston, Partner and National Director of Asset Management for TerraCap.
Newmark‘s Senior Managing Director, Ryan Moody represented the seller in the disposition. TerraCap was represented by Matt Williams and Kyle Schlitt of Newmark’s Debt & Structured Finance group in arranging financing for the acquisition.
Moody said, “Bridgewater offered the buyer the opportunity to significantly enhance the property and take advantage of the rental growth of the submarket. Bridgewater was located in the Conway submarket within Orlando, which has a ton of new growth and trendy development in the works. The property also has an incredible location proximity to downtown Orlando, the International airport, and medical employment.”
Schlitt added, “The sponsor was able to take advantage of the extremely low interest rate environment and will be able to focus the additional cash flow generated from the low rate on property enhancements moving forward.”
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