3 Jacksonville Properties Command $96M

Riverview Apartment Homes. Image courtesy of CBRE

A joint venture between Cyclone Investment Group and Skywood Properties has acquired a portfolio of three assets in Jacksonville, Fla., from Oro Capital Advisors. The purchase price of The Jaguar Portfolio acquisition, arranged by CBRE, totaled $96 million.

Built in 1974 at 1441 Manotak Ave., Cross Creek Apartments features 292 units averaging 961 square feet, across 29 separate buildings. A play area is among the amenities of the community.

Located at 301 Caravan Circle, Riverview Apartment Homes was also built in 1974 and features 21 buildings and 304 apartments averaging 952 square feet. A soccer court is among the common-area amenities of the property.

Situated at 333 Larina St. and featuring 29 buildings, The Columns was constructed in 1968 and offers 246 apartments averaging 902 square feet. Among the amenities of the apartment community is a pair of laundry facilities.

Growing astronomically

“This year, the value-add segment has been so strong,” Cliff Taylor, senior vice president at CBRE’s Jacksonville office, told Multi-Housing News. “And with the in-migration of folks into the state of Florida, rents across the state have been growing astronomically. In the trailing seven quarters, Jacksonville’s rent growth has been third in the nation behind Phoenix and Tampa. The rent growth in Jacksonville has been 23 percent since the start of 2020. If you averaged the historical norm of 4 percent, that would be almost six years of rent growth since the beginning of last year. Investors just want to buy in because they know rent growth will continue across Florida.”

But Taylor said, “what everyone loves about this portfolio” is that usually properties this old typically receive periodic upgrades through the decades, and these haven’t. “It’s hard to find assets with legitimately untouched, classic units in this market,” Taylor added. “That is very rare . . . There seems to be more upside because they haven’t been even partially upgraded over the years.”

Bridge financing

The Columns. Image courtesy of CBRE

As a result, the portfolio drew substantial attention from potential buyers. “We had a lot of interest,” he said. “There was some international money. We’re seeing a lot of Israeli money in the market, and a lot of European money.”

The seller was represented by CBRE’s Taylor and Joe Avers. Jeff Kinney and Phil Rachels of CBRE Capital Markets arranged the three-year bridge financing with Arbor Realty Trust, which was an 80 percent of total costs, LIBOR floating rate loan on behalf of the buyer.

Last month, EDEN Living broke ground on its first build-to-rent property in Florida, Eden Arlingwood in Jacksonville.