An apartment complex in AdventHealth 's Health Village sold for $12 million less than it did three years ago.

An entity tied to private equity firm Blackstone bought the Ivy Residences at 2650 Dade Ave. in Orlando for $49.6 million in a deal that closed Oct. 15, according to county documents.

The property was owned by Ivy Orlando Property LP, an entity tied to Canadian multifamily investor Frankforter Group, which bought the property in 2021 for $62 million.

Frankforter Group executives did not respond to a request for comment. A Blackstone executive declined to comment on the sale.

The 248-unit Ivy Residences was developed in 2014 by Creative Village developer Ustler Development Inc. , in partnership with Atlanta-based Wood Partners, which sold the complex in 2016 for $53.5 million.

Ustler and Wood also built the 285-unit Alta Health Village apartments next door to the Ivy, which sold in 2022 for $107 million.

Ustler Development President Craig Ustler said the price drop is indicative of market changes around the multifamily market in Orlando.

"Health Village is still a great location and these apartments are full and in demand (and this is true for all urban locations in Orlando), but when you have lower NOI and higher cap rates, values adjust," Ustler wrote in an emailed response to Orlando Business Journal . "Some owners get caught with loans maturing or capital partners that want out and they have to sell, and the new buyer pays what it is worth now. That is what happened at The Ivy."

The average rent in metro Orlando $1,780 per month, up 3% from $1,729 in 2021 when the building last sold, according to real estate analytics firm CoStar Group . Meanwhile, insurance premiums on some properties rose more than 125% over the five years ending in 2023.

Altamonte Springs-based AdventHealth has bought multiple acres in the past two years around Health Village, the area around its downtown campus off Princeton Street.

In 2023, it was announced that developer Onix Group is planning a 14-story mixed-use building with a hotel, medical offices, shops and restaurants called The Gateway at the corner of Princeton Street and Orange Avenue.

"[Blackstone] got a good deal and this property will be a great long-term investment," Ustler said. "Health Village is an irreplaceable urban location with a huge anchor employer and this bodes well for apartments."

Meanwhile, metro Orlando added 15,055 multifamily units in the past 12 months, or 28% of the 54,100 units delivered since 2019, according to CoStar Group Inc. There are 13,822 units under construction in Orlando.

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