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Elco Landmark Buys Multifamily Assets Totaling $100M from Equity Residential

21 Dec 2012, 9:57 pm

By Georgiana Mihaila, Associate Editor

Elco Landmark Residential recently closed on the acquisition of four multifamily properties in two separate transactions with Equity Residential for a combined price of approximately $100 million. The company is targeting the acquisition of apartment communities in what it sees as quality locations throughout the Southeast.

The first transaction consisted of three Jacksonville properties that make up for 882 units. According to the Jacksonville Business Journal, these properties called for a $72.5 million sale price. The three Jacksonville properties involved in the transaction are:

-          The 248-unit Landmark at Sage Commons, formerly known as Waterford at Deerwood; the property was built in 1985;

-          Landmark at Hampshire Place, formerly known as Royal Oaks, was constructed in 1991 and contains 284 units;

-          Landmark at Crescent Ridge, formerly known as Bermuda Cove, was constructed in 1989 and contains 350 units.

Each community offers residents a number of amenities including a swimming pool, spa/hot tub, tennis courts, clubhouse, fitness center, business center and a car care center. Elco Landmark plans to implement a nine month renovation and repositioning program to enhance the properties’ common areas and amenities. The three properties are currently 94 percent occupied.

An Orlando multifamily property—the 252-unit Landmark at Siena Springs—was acquired in a separate transaction. This property is also headed for improvements, as the company plans on adding new signage and enhancing the interior of each unit over the next nine months.

“We are pleased to expand our existing portfolio with four high-quality properties that adhere to our disciplined investment strategy,” said Joseph Lubeck, CEO of Elco Landmark Residential. “Each asset is located in a core southeast market that is supported by strong fundamentals including above-average employment rates, population growth and limited new housing supply. These market dynamics combined with our proven repositioning strategy will allow us to achieve unrealized cash flow potential and value.”

Image: Landmark at Crescent Ridge via Elco Landmark Residential

 



364-Acre Ranch Retreat Sells at Auction

7 Dec 2012, 9:56 pm

By Georgiana Mihaila, Associate Editor

Anabelle Island, a 364-acre private ranch estate located 30 minutes south of Jacksonville, recently changed hands at an auction.

The sale of 2920 Russell Road, which includes a furnished 7,798-square-foot main residence, was conducted  through New York-based Concierge Auctions in partnership with Beverly Brandenburger, Gayle Washnock and Newman Rossie of Manormor Sotheby’s International Realty. Washnock also represented the buyer.

Anabelle Island is a private enclave tucked in the woods at the end of a nearly mile-long graded sand and limestone drive. The main home contains five bedrooms, five full bathrooms, a custom cook’s kitchen, a massive Georgia stone fireplace and a spiral staircase that leads to an upstairs loft area. The living room overlooks a 5.41-acre spring-fed lake, which is stocked with bass, bream, carp and catfish. Also outdoors is a screened-in, lakeside veranda and two natural artesian wells. A stone deck runs to the infinity pool, spa and outdoor kitchen.

Adjacent to the main house is a three-car garage with a heated and cooled storage space above the parking, ideal for guest space or an extra amenity like a media room. A separate four-car garage is at the end of the paver motor court. Fully fenced, other amenities include a large functional barn with tractor and other farm equipment included and an 18-acre pasture.

“Anabelle Island is a versatile property in an area ripe for growth, which appealed to a diverse mix of potential owners,” stated Laura Brady, president of Concierge Auctions. “Concierge Auctions has had tremendous success in the Jacksonville area including the recent sale of a three-acre luxury estate along the St. Johns River, a private residence in the Glen Kernan Golf & Country Club, and a newly constructed home within the exclusive Palencia golf and tennis community. We appreciate our ongoing partnership with Manormor Sotheby’s International Realty and thank their team for their collaborative efforts towards making this auction a success.”

Image courtesy of adelto.co.uk

 



DeBartolo, Liberty Group JV Buys Jacksonville’s Holiday Inn Express

27 Nov 2012, 5:41 pm

By Georgiana Mihaila, Associate Editor

DeBartolo Development L.L.C., in a joint venture with Liberty Group as operating partner, has acquired the Holiday Inn Express and Suites Jacksonville-Blount Island.

The joint venture obtained the non-performing senior mortgage on the asset in 2011, and recently received ownership of the property in Federal Court after a bankruptcy and foreclosure case. No financial details have been disclosed, but the amount for which the property most recently traded was $6.5 million.

Built in 2004, the property is located at 10148 New Berlin Road, just off Route 9A in the heart of the city of Jacksonville near Blount Island and the St. Johns River. It is the closest hotel to the Jaxport Cruise Ship Terminal. The hotel features 73 guestrooms including 17 suites, an outdoor pool, a fitness center, a 2,000-sq.-ft. meeting room, and atrium-style great room.

The three-story Holiday Inn Express and Suites is just a few blocks from the Carnival Cruise Port. Only 11 miles from Jacksonville Beach and the Atlantic Ocean, it is a preferred choice for travelers sailing out of the local port. Several area attractions–Anheuser-Busch Brewery, Jacksonville Zoo, Kinsley Plantation and Jacksonville Landing–are minutes away.

“This hotel perfectly complements our growing portfolio and investment strategy of acquiring under-valued top-tier assets. The Jacksonville market has shown significant resilience, and we anticipate creating tremendous value through our great relationship with Intercontinental Hotels, and increasing Net Operating Income through capital improvements and operational efficiencies,” said Punit R. Shah, president and chief operating officer of Liberty Group.

Image via TripAdvisor



MAA Joins Hallmark, Bristol on Development of $37M Mixed-Use Project

7 Nov 2012, 10:43 pm

By Georgiana Mihaila, Associate Editor

Less than a week before groundbreaking, a major multifamily player is added to the construction team of the newest residential and retail project in the Brooklyn area of downtown Jacksonville.

Memphis-based Mid-America Apartment Communities, Inc. (MAA) will join Hallmark Partners Inc. and Bristol Development LLC on the $37 million 220 Riverside project.

Set to break ground on Nov. 13, 220 Riverside will include a 294-unit upscale apartment community with structured parking and luxurious common areas.  The seven-story apartment development will feature units ranging in size from 615 square feet to 1,200 square feet. 220 Riverside will sit on a two-acre site, approximately one mile southwest of Jacksonville’s Central Business District in the Riverside neighborhood.

220 Riverside will directly front a new community park and amphitheater. The majority of the units will have river, park or courtyard views. The development will also feature 18,000 square feet of retail stores and restaurants on the first floor of the project fronting the community park and Riverside Avenue. Other amenities featured at 220 Riverside will include a fitness center, active club room, cyber café and a rooftop courtyard with a resort-style pool, outdoor kitchen and seating niches overlooking the St. Johns River.

According to Jacksonville Business Journal, MAA currently owns 12 apartment communities in Northeast Florida. Two of these properties—Atlantic Crossing on Gate Parkway and Tattersall at Tapestry Park—are among the highest-dollar commercial real estate transactions in 2011.  



LandSouth Starts Work on New $21M Apartment Community in Jacksonville

24 Oct 2012, 8:18 pm

By Georgiana Mihaila, Associate Editor

LandSouth Construction will be bringing new housing options to Jacksonville residents. The company has officially started work on a $21 million community at the southwest corner of J. Turner Boulevard and Southside Boulevard.

The 18 acres development will consist of 280 residences, 19 buildings, a resort-style clubhouse and other amenities. Construction commenced last week and is scheduled for completion in the fourth quarter of 2013. When completed, Lost Lake Resort Apartments amenities will include an 18,000-square-foot clubhouse with a full-service fitness center, indoor basketball court, Cyber Café, zero entry resort-style pool and spa. Other amenities will be volleyball courts, resort cabanas, dog park, covered hammock areas and outdoor kitchen with grills.

The gated community will feature one-, two- and three-bedroom homes with one or two baths. Apartments will average 1,096 square feet of living space.  Interior elements will include ceramic tile floors in baths, faux wood plank flooring in kitchen and entry ways, wide-rail premium wood cabinetry with crown moulding, island kitchens with snack bar, luxury appliances with laundry in each unit, and custom details including curved shower rods, security door locks and electronic security system.

Lost Lake Resort Apartments will be located at the center of Jacksonville’s growing entertainment, retail, restaurant and employment hub, while also offering easy access to the beaches and downtown.

According to a company release, in building Lost Lake Resort Apartments, LandSouth Construction is using an integrated approach under which service components work together to provide a seamless delivery system.

Lost Lake Apartments L.L.C. is the developer, while Forum Architecture & Interior Design of Altamonte Springs, Fla. is designing the community.

Image via Forum Architecture & Interior Design



Dalfen America Makes Opportunistic Investment in 240,000-Sq.-Ft. Distribution Center

11 Oct 2012, 10:36 pm

By Georgiana Mihaila, Associate Editor

Dalfen America Corp. recently acquired a 240,000-square-foot, Class A distribution center on Jacksonville’s Northside.

Grubb & Ellis/Phoenix Realty Group Inc. handled the sale. Brokers Aaron Zarle, Bryan Bartlett and John Richardson represented the seller, New York-based W. P. Carey & Co. LLC. The company did not disclose the financial details of the transaction, but Jacksonville Business Journal reports that the property traded for $3.9 million according to public records–$2 million less than what W.P. Carey paid for it in 1992.

Built in 1991 and totaling 240,000 square feet, the concrete tilt-up industrial property has 30’-32’ clear ceiling heights, 4,000 square feet of office and a total of 56 dock-high loading doors. The property, currently vacant, has previously been occupied by Sears.

Sean Dalfen, executive managing director at Dalfen America Corp., said: “This building is ideally located in extremely close proximity to I95, JAX port and the Mitsui terminal. In its size range, the property is hands down the market’s best available distribution facility.”

Quebec-based Dalfen America Corp. has become one of North America’s most active buyers of opportunistic industrial real estate, having transacted on 39 buildings and 2 million feet of prime development land, over the past 18 months. Through its current opportunistic industrial fund, it has acquired 30 institutional-quality industrial buildings in seven states and intends to more than double that number within the next 12 months.

Image courtesy of Dalfen America Corp.



Prudential Mortgage Provides $10.5M Loan for Palatine Acquisition

27 Sep 2012, 10:46 pm

By Georgiana Mihaila, Associate Editor

Prudential Mortgage Capital Co. has originated a $10.5 million Fannie Mae loan for an affiliate of Palatine Capital Partners Management LLC to finance its purchase of The Villas at Dames Point Crossing apartment community.

Originally constructed in two phases as condominiums between 2006 and 2007, the owner opened the complex as a rental following the 2008 U.S. financial crisis. The Villas, which remains titled as a condominium, is the newest community constructed in the Arlington submarket of Jacksonville and is more than 90 percent occupied. The 180-unit apartment community is located near I-295. It is close to local beaches, the airport, downtown Jacksonville, Mayport Naval Station and the Southside office market.

“As one of the newest properties in this area, its high occupancy, potential for future condominium sales and its proximity to key area office, recreational and shopping areas made this transaction extremely attractive to us,” said Brian Salyards, a principal with Prudential Mortgage Capital, who originated the transaction. “We look forward to continuing our relationship with Palatine Capital Partners Management.”

Palatine Capital’s founder and managing partner Alex Hurst admitted that the execution of the transaction was a highly complicated one which transpired over many months. The Villas at Dames Point Crossing’s purchase represents a step towards continuing to grow the firm’s footprint in Florida and the Southeast.

Palatine Capital Partners Management is a private real estate principal firm focused on situational asset level investing in the United States. Palatine specifically pursues opportunistic equity investments in apartment properties and acquires performing and non-performing whole loans nationwide in every asset class. Since inception in 2007, Palatine has acquired interests in over $715 million of assets, including over 3,500 apartment units, 265,000 square feet of commercial space and 20 whole loans.

Image via http://www.villasatdamespoint.com



Nordstrom to Move into Simon Property’s St. Johns Town Center

12 Sep 2012, 8:59 pm

By Georgiana Mihaila, Associate Editor

A 124,000-square-foot, two-level Nordstrom full-line store is heading for St. Johns Town Center in fall 2014, company officials announced.

“We’ve had our eye on Jacksonville for a long time, so it’s gratifying for us to now have this opportunity to open our doors at St. Johns Town Center,” said Erik Nordstrom, president of stores for Nordstrom, Inc. “We’re fortunate to have loyal customers in Jacksonville and excited to be able to serve them better with a store at the First Coast’s top shopping destination.”

The company believes opening a Jacksonville store at the centrally-located St. Johns Town Center will put it in an ideal position to serve customers throughout the Northeast Florida region.

The Jacksonville Nordstrom store will anchor a new wing on the southwest side of the 1.1 million square-foot, open-air, St. Johns Town Center. The center was co-developed and is co-owned by Simon Property Group and Ben Carter Properties. With 10 million visitors each year, St. Johns Town Center is the area’s premier shopping destination, conveniently located off of J. Turner Butler Boulevard and I-295 and easily accessible from the Beaches, St. Johns River and Intracoastal Waterway areas.

“We’re excited to have Nordstrom join the terrific collection of retailers and restaurants operating at St. Johns Town Center,” said Richard S. Sokolov, president and  COO of Simon. “It will further broaden the appeal and market for this great property. We’re also pleased to further expand our strong relationship with Nordstrom. This will be the 28th Nordstrom store in our regional mall portfolio.” The executive has admitted to trying to attract Nordstrom to the Jacksonville shopping center since 2003, when the project was completed.

Image via http://www.eujacksonville.com

For more market data on Jacksonville, click here.



Carlyle Group Buys Lender-Owned Independent Living Community for $19M

29 Aug 2012, 3:06 pm

By Georgiana Mihaila, Associate Editor

The Carlyle Group has purchased the lender-owned independent living community Brighton Bay for $19 million. The sales price represents $102,703 per unit or $85 per square foot.

The 185-unit property is located in southeastern Jacksonville. Michael Pardoll, senior vice president investments in Marcus & Millichap’s Charlotte, N.C. office, represented the seller, a subsidiary of Wells Fargo & Co. which entered into possession of the retirement home in 2011 for $25.7 million.

“Occupancy at independent living facilities will continue to strengthen as spillover demand filters in from age-restricted and market-rate communities,” says Pardoll. “Brighton Bay is well positioned to take advantage of this trend and also to change with the times as the property was built to code for conversion to assisted living.”

Following the purchase, The Carlyle Group, a Washington, D.C.-based asset management company, brought in Leisure Care as its management partner. The companies have partnered in The Carlyle Group’s previous three acquisitions. The addition of Brighton Bay to Leisure Care’s operations portfolio has contributed to a 20 percent growth of the third-party management company’s managed assets. The asset represents Leisure Care’s 40th location.

The 222,444-square foot Brighton Bay was constructed in 2010 on 8.2 acres. The community is located at 10061 Sweetwater Parkway, less than one mile from Florida State Road 9A. It is next door to a 1,000-resident retirement community, and 15 minutes from downtown Jacksonville.

Brighton Bay offers studio, one-bedroom and two-bedroom residential suites on four floors. All suites include a full kitchen, large living room and one or more bathrooms.

For more market data on Jacksonville, click here.



Bell Partners Adds $38.6M Apartment Community to Its Portfolio

17 Aug 2012, 10:13 pm

By Georgiana Mihaila, Associate Editor

Bell Partners Inc. has purchased Villas of St. Johns Apartments for a reported amount of $38.6 million. The company, which acquired the property on behalf of its investors, will be renaming the property Bell Riverside.

Bell Riverside is a 257-unit Class A luxury community, located on approximately 4.5 acres and containing one-, two- and three-bedroom apartment homes. The property offers resort-like amenities, including a riverfront pool, private boat dock, sun deck and spa, state-of-the-art fitness center, business center, library, controlled-access gates and an attached parking deck. It is situated on the northern bank of the St. Johns River in one of Jacksonville’s best neighborhoods and within close proximity to Downtown Jacksonville and local shopping and restaurant venues.

Jon Bell, president of Bell Partners, said, “The acquisition of the Bell Riverside property aligns with our strategy to acquire high-quality, well-located apartment properties throughout selected markets in the U.S. The unique location and high-end nature of this property makes it an excellent addition to our Florida portfolio.”

Bell Partners Inc. is one of the country’s leading apartment investment and management companies. The company invests capital on behalf of accredited high net worth and institutional investors. To date in 2012, Bell has acquired more than $300 million in apartment properties, including Bell Riverside.  Founded more than 35 years ago and now employing approximately 1,700 associates, Bell Partners oversees a portfolio valued at almost $5 billion across 16 states, mostly in the Mid-Atlantic, Southeast and Southwest.  The company now owns or operates 244 apartment properties, located generally in the Mid-Atlantic, Southeast and Southwest.

Image via www.thevillasatstjohns.com



Royston Group Lists Best Buy-Anchored Net Lease Property

1 Aug 2012, 8:10 pm

By Georgiana Mihaila, Associate Editor

The Royston Group has listed for sale a 45,687-square-foot single-tenant net lease retail box leased to electronics juggernaut Best Buy.

The building, constructed in 1999, sits on five acres of land and is leased to Best Buy on an absolute triple net lease basis for 20 years.

The Royston Group, a provider of services for a multitude of net lease commercial property types including office, industrial, retail and medical, has completed over $1.5 billion in real estate sales since its inception in 1992.

Rob Sutton and Greg Cortese of The Royston Group have already begun the marketing process. The site sits next to a 1.3 million-square-foot mall owned by Regency and is surrounded by major retail players such as Target, Lowe’s and Home Depot amongst others. The property is encumbered by a loan which will likely be assumed by any potential buyer.

“This site is located on a main retail location and has a triple net lease guaranteed by Best Buy for another eight years. This strong retail location combined with the triple net lease and the income tax advantages in Florida present this property as a great investment for a savvy buyer ” said Vice President of Investment Sales Rob Sutton.

Interest in retail properties in the Jacksonville metro area is high. A market report released by Marcus & Millichap for the second quarter of 2012 says institutional investors are very active in the market, and they’re looking for premium assets. Single-tenant transaction velocity rose 31 percent in the past four quarters, after declining 13 percent during the prior year. The median price of assets sold year over year through the first quarter is up 85 percent, to $307 per square foot, due to the growing demand for high-quality properties.



Morgan Group Starts Project in Jacksonville’s Revived Construction Market

26 Jul 2012, 10:23 pm

By Georgiana Mihaila, Associate Editor

The Morgan Group has started construction on a 240-unit Class A apartment community called The Terrace at Town Center.

Located on 11.72 acres in Jacksonville, Fla.’s Southside/JTB growth corridor, the three-story, garden-style community targets young families and professionals who work along the JTB corridor. Featuring a mix of one- and two-bedroom units—averaging 953 square feet—the apartment community will include a resort-style swimming pool with grilling stations, a dog park, state-of-the-art fitness center, Internet lounge, demo kitchen and resident room.

All amenity areas will include WiFi. The Morgan Group will serve as the apartment community’s management company once the project welcomes its first residents, which is expected in December 2012.

“This new development will benefit from the success of our ‘Phase I’ Arelia property next door, which we also manage and jointly own,” said Chairman and CEO Mike Morgan. “Arelia has 270 units and is situated on 13.56 acres. It has been a very successful lease-up, reaching 93 percent occupancy in just 10 months after it opened in August 2009. We expect the same success with The Terrace at Town Center because of its proximity to one of Jacksonville’s largest employment areas in the Southside/JTB corridor, as well as shopping, dining and entertainment within walking distance at St. John’s Town Center.“

The Morgan Group’s decision to move forward with The Terrace at Town Center is consistent with Marcus & Millichap’s forecast for Q3. The firm’s recent report reports that construction activity continues to accelerate in Jacksonville, and that the level of new developments will not slow improvements in property performance in the second half of 2012.

According to the annual forecast, developers will complete 700 market-rate rentals in 2012. Last year, only 158 market-rate apartments hit the market.