Excelsa Properties, the U.S. real estate investment arm of Excelsa Holding, made its second multifamily property sale in a 30-day span in August, following a successful value-add strategy. The company sold the five-property Archer Road portfolio in Gainesville, Florida, to a joint venture between LYFE Properties Group and Skywood Properties for $89.5 million.
The Archer Road portfolio, which was acquired for $42.6 million in August 2018, was the first purchase through Excelsa Properties’ maiden multifamily fund, Excelsa US Real Estate I. The sale marks the second exit from the fund, following the sale of Bend at Oak Forest in Houston in July.
The five multifamily communities in the portfolio were built in the 1970s and early 1980s, with significant deferred maintenance at the time of the acquisition. Excelsa implemented a value-add program over the past four years, investing $4 million in repositioning the properties and renovating about 25% of the portfolio’s 582 units. The properties were upgraded from Class C to Class B, and improvements included a clubhouse remodeling, updates to outdoor amenities and landscaping, roof replacements, and unit interior work.
“In addition to the hard work and investment that went into transforming the properties, the sale benefited from a white-hot Florida multifamily market driven by population, job, and wage growth,” said chief operating officer Jon Woods.
