June 13, 2024
By: Travis Watts, Director of Investor Development
Braxton Waterleigh: Where Luxury Living Meets Opportunity
Ashcroft Capital presents a unique investment opportunity that combines luxury living with strategic market positioning. Located in one of the top three fastest growing master-planned communities in the country, Braxton Waterleigh is a premier 354-unit luxury asset located in Winter Garden, Florida, a submarket of Orlando.
Built in 2021 by Fortune 500 homebuilder D.R. Horton, this property offers a unique blend of elegance, community appeal, and investment potential. Braxton Waterleigh stands as a prime example of a Class A property, featuring high-end amenities, open floor plans, and spacious 9ft ceilings.
The property’s vicinity boasts a 72% white-collar workforce, with average incomes around $90,000 within a one-mile radius, and $115,000 among property residents. This affluent demographic, along with access to A-rated schools and a rapidly expanding job sector, makes Braxton Waterleigh highly attractive to investors.
Market Analysis: Orlando’s Diverse Economy Fuels Apartment Demand
Orlando is known globally for its tourism industry. It is home to Walt Disney World and Universal Orlando, which support over 100,000 jobs and attract more than 75 million tourists every year. Beyond tourism, Orlando’s robust economy includes thriving sectors such as healthcare, aviation and defense, aerospace, financial services, and advanced manufacturing. These diverse industries drive strong job growth and high salaries, fueling apartment demand.
Submarket Analysis: Horizon West’s Master-Planned Oasis
Braxton Waterleigh is nestled in Horizon West, a master-planned community that has seen population growth of 130% since 2010. Horizon West is not just another suburban development; it is a dynamic community spanning over 22,000 acres (about the area of Manhattan) designed for family, entertainment, luxury, employment, and convenience.
The community is designed to support the growing population, as residents enjoy easy access to major roads, a variety of retail and entertainment options, and access to newly constructed A-rated schools located in the #2 ranked school district in Orange County. The area is also home to significant developments like the Hamlin Town Center and Flamingo Crossings Town Center, which enhance the community’s convenience and appeal.
Mark-to-Market Opportunity
Over the past few years, three new apartment communities have been delivered in the immediate area surrounding Braxton Waterleigh. During the lease-up phase of these communities, rents remained flat as concessions were offered to new residents in order to help stabilize the properties. These properties are now achieving high occupancy levels, and rents are beginning to increase in the market accordingly.
Given the current owners’ need to sell due to their maturing debt, coupled with below-market rents, Ashcroft is acquiring Braxton Waterleigh at a nearly 23% discount. Furthermore, completions in Orlando are expected to fall by 57% in 2026 which is projected to increase the demand for Class-A apartments, including Braxton Waterleigh.
Braxton Waterleigh Property Features and Amenities
Braxton Waterleigh offers a variety of best-in-class amenities that boost its appeal to potential residents. These include a heated saltwater pool, first-class fitness center, car wash station, BBQ grilling areas, a dog park, parcel lockers, sand volleyball court, business center, premium lounge areas, and units that offer oversized floor plans. This combination of high-end amenities and well-designed living spaces positions Braxton Waterleigh as a premier residential option in the area.
Strategic Acquisition and Market Positioning
The acquisition of Braxton Waterleigh is strategically timed to take advantage of current market conditions. The property is being purchased at a ~10% discount to replacement cost and at a cap rate of 5.5%, which is more competitive compared to recent transactions and comps in the area. Current market dynamics and a pre-existing relationship with the seller have created an off-market opportunity for Ashcroft Capital to acquire this asset with favorable terms.
The Business Plan at Braxton Waterleigh
Though the property currently offers luxury finishes and a best-in-class amenity package, we will continue to further enhance the common areas and amenities to elevate the overall appeal of the property. Along with rebranding to Ashcroft Capital’s “Halston” brand, the business plan for Braxton Waterleigh includes several strategic initiatives to enhance the property:
- Enhanced Unit Interiors: Implementing tech packages that provide smart locks, smart thermostats, smart lights, and leak detection systems, and replacing carpet in living areas on the 2nd and 3rd floors with upgraded faux wood flooring.
- Exterior and Common Area Improvements: Elevating amenities and the common areas, addressing minor deferred maintenance, and improving curb appeal and signage.
- Operational Improvements: Tightening operations and improving resident retention. Adjusting rents to market level and reducing concessions and bad debt on the property.
These projects will be overseen by Birchstone Residential and Birchstone Construction, Ashcroft Capital’s in-house property management and construction team, to ensure a seamless and effective implementation.
Financial Structuring for Investors
To mitigate risk, Ashcroft Capital will secure a 5-year fixed-rate agency loan with an LTV of approximately 65-70%. This loan is anticipated to include 5 years of interest-only payments at an all-in interest rate of approximately 5.55%. This strategic debt structuring aligns with the property’s anticipated hold period and reduces the risk of interest rate fluctuations throughout the hold period.
Looking Ahead: The Exit Strategy
Ashcroft Capital plans to seek a disposition of Braxton Waterleigh in approximately five years. The goal is to capitalize on the property’s enhanced value resulting from the successful implementation of the business plan, market appreciation, and stabilized rental income.
Join the Journey: Braxton Waterleigh Offers Strategic Advantage
As Orlando continues to grow and diversify, Braxton Waterleigh is poised to capitalize on current and upcoming trends, as a strategic acquisition by Ashcroft Capital.
The property offers investors a strong resident appeal, mark-to-market upside potential, and strategic positioning within one of the nation’s fastest-growing communities in the United States. Investing in Braxton Waterleigh is not just about owning a piece of luxury real estate; it is about joining a dynamic community of investors alongside a best-in-class operator to enhance the lives of residents and support the ever-growing demand for rental housing in Central Florida.
To learn more, please visit www.investbraxton.com or schedule a call with our Investor Relations Team today.
