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Starlight funds acquire Orlando, Raleigh properties for $254M

Two Starlight funds have announced acquisitions of multiresidential properties in the U.S. cities...

IMAGE: Starlight U.S. Residential Fund logo.

Two Starlight funds have announced acquisitions of multiresidential properties in the U.S. cities of Orlando and Raleigh, comprising 584 apartments, for $254 million (all figures Cdn).

The Starlight U.S. Residential Fund (SURF-U-X) acquired Eight at East in Orlando for $118 million. This is Starlight’s newest investment vehicle, having closed its initial public offering in November with $312 million in equity.

The Starlight U.S. Multi-Family (No. 2) Core Plus Fund (SCPT-A-X) has closed on its acquisition of 320 units in a low-rise, garden-style community in Raleigh for $136.3 million.

Eight at East is located in an Eastern Orlando suburb and was completed in 2017. It is comprised of 264 one-, two- and three-bedroom multiresidential suites in 20 garden-style two- and three-storey buildings on a 32-acre site.

Eight at East

“We are excited to add Eight at East, a high-quality, multifamily residential community located in one of Orlando’s strongest suburban submarkets with diverse demand drivers and significant growth potential.” said Evan Kirsh, the fund’s president, in the announcement.

“This property will help to further geographically diversify the fund’s portfolio by providing exposure to a robust, new market.”

Located close to the University of Central Florida, amenities include a clubhouse with coffee bar, conference room, a games room and a 24-hour fitness centre. Additional outdoor amenities include an veranda area overlooking a resort-style pool with cabanas, outdoor fireplace and fire pit, gas grill barbecue areas, dog park and conservation boardwalk.

The property was paid for via proceeds from the fund’s IPO  and new first mortgage debt of $82.49 million with an initial term of three years, subject to two one-year extension options.

Wellington, Fla.-based Bainbridge Companies will act as property manager. Bainbridge manages 3,000 units for Starlight across four markets including Hudson at East – located adjacent to Eight at East – a property which Starlight’s No. 2 Core Plus Fund owns and recently refinanced.

Following the acquisition, the U.S. Residential Fund will have interests in and operate a portfolio comprising 1,702 class-A residential suites in AustinTampaLas Vegas and Raleigh as well as 91 single-family rentals in Atlanta.

The Raleigh Property

Completed in 2002, the Raleigh property is located at 10311 Falls Mill Dr. and is comprised of one-, two- and three-bedroom multiresidential suites in 11 garden-style, four-storey buildings on a 16-acre site.

Amenities include a resident clubhouse, business centre, movie theatre room, package room, a 24-hour fitness centre, resort-style pool, large summer seating areas with barbecues, a playground and a dog park.

“The property is well situated in one of the most dynamic markets in the United States and will help to further geographically diversify the fund’s class-A portfolio,” Kirsh said in a separate announcement.

High 5 Residential of Nashville will manage the property. The company currently manages approximately 2,100 units for Starlight in Raleigh and Nashville.

The Falls Mill Drive property was paid for via proceeds of the Hudson at East refinancing and new debt of approximately $112.8 million, including $104.6 million of initial funding and $8.2 million of future funding for capital expenditures.

With this acquisition, the Core Plus Fund operates a portfolio comprising 995 class-A stabilized, income-producing multiresidential suites in DenverOrlando and Raleigh.

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