Tellus Partners, along with its partner, Varden Capital, are developing a multifamily project in Winter Haven, FL. The total project will consist of 264 units in four-story buildings with elevators and interior corridors. The highly sought-after Winter Haven market has no supply-side pressures on vacancy or rent in the near term, due to minimal construction. In addition to the minimal construction, the Winter Haven market has an extremely limited supply of Class-A apartments. The project will immediately be “Best in Market”.
Partnership views this as an excellent opportunity to deliver a market rate apartment community in an area that is primed for rapid growth. The Winter Haven apartments in the subject submarket are experiencing substantial market demand over supply (e.g.: Preserve at Lake Wales is at 100% occupancy with a waitlist of over one year).
Multifamily demand surged in the first half of 2021 with two of the strongest quarters of net absorption on record for the market. The record demand significantly tightened market conditions with the average vacancy rate plummeting more than 500 basis points since the start of the year and reaching an all-time low in 3Q21.