ZMR Capital is bullish on Central Florida, making three major apartment investments in the span of seven days.
The Tampa-based real estate investment firm has acquired the 982-unit Reserve at Brandon, one of the largest multifamily communities in the Tampa Bay metro area; the 240-unit The Laurel at Altamonte in Apopka; and the 320-unit Camila in Kissimmee in separate off-market transactions. It also has several deals in the pipeline that will add almost 2,000 units to ZMR’s Florida portfolio, increasing it to just over 4,000 units.
“The speed in establishing and increasing our footprint in targeted markets around Florida is the direct result of the fine effort that our team has spent building relationships in these markets and doing the requisite research,” said ZMR CEO Zamir Kazi. “People continue to move to Florida because of the growing employment opportunities and the state’s lower cost of living compared to other areas of the country. With that affordability comes the opportunity to grow rents, which makes Florida very attractive for us.”
Reserve at Brandon, which will be rebranded as Skye Reserve, is ZMR’s third multifamily acquisition in the Brandon submarket in the past five months. The community is located within a half mile of Brandon Oaks and Palms at Paradise, two adjacent properties acquired in December.
“We will continue to pursue value-add opportunities, regardless of size, in markets exhibiting strong multifamily fundamentals throughout the country, with a concentrated focus on the Southeast, where we plan to invest approximately $1 billion in the next 24 to 36 months,” added Kazi. “Competition for assets continues to escalate in Florida, but, as a local investor, we’re seeing that our extensive network of contacts and relationships is providing us the opportunity to bid on and acquire properties like Reserve at Brandon. Sellers and their brokers in Florida have learned we are willing to roll up our sleeves and get deals done.”
The community was built in three stages from 1991 to 2002, offering a mix of one-, two-, and three-bedroom floor plans with stainless steel appliances, walk-in closets, planked vinyl flooring, designer faucets, and balconies and patios.
The property has undergone light renovations over the years, but ZMR will implement a capital improvement program to bring all units to an elevated level, including the addition of in-unit washers and dryers. In addition, the common areas will be updated to enhance the property’s curb appeal.
Cushman & Wakefield’s Nick Meoli and Mike Donaldson represented both the seller, NorthEnd Equities and Residential Management, and the buyer on the transaction.
Camila and The Laurel at Altamonte both are located in in-demand Orlando metro submarkets and close to major employment and entertainment hubs.
Camila, built in 1990, has 14 three-story buildings on 27 acres, which include a large parcel of unused land that can be developed into 78 units, additional amenities, or a mix of the two. The Laurel at Altamonte, built in 2000, features 11 two-story buildings on approximately 14 acres.
While the common areas and exteriors have been updated, ZMR will initiate a capital improvement plan to modernize the units with stainless steel appliances, quartz countertops, subway tile backsplashes, vinyl plank flooring, upgraded lighting and plumbing fixtures, and Nest thermostats.
“Orlando exhibits excellent multifamily fundamentals, and both these properties are great value-add assets in two of the top submarkets in the state,” Kazi added. “Combine those things with the market’s relative affordability, and you get great investment potential.”
Shelton Granade and Luke Wickham in IPA’s Orlando office represented the seller in the transaction.