By Tudor Scolca
Preferred Apartment Communities has acquired Lux, a 265-unit community in Jacksonville, Fla. The transaction was made through a wholly-owned subsidiary of PAC and was financed through a non-recourse first mortgage loan held by Nationwide Life Insurance Co. The loan has a principal balance on the first mortgage of approximately $31.5 million and a fixed rate of 3.9 percent per annum, with an amortization period of 30 years. The loan has a 12-year term.
The new acquisition is located at 11901 Abess Blvd. and comprises 115 one-bedroom, 113 two-bedroom and 37 three-bedroom units, ranging in size from 782 to 1,470 square feet. According to Yardi Matrix, average monthly rent is $1,355 and the community is just over 90 percent occupied. Common amenities available include controlled access, waterscape, fitness center, business center, clubhouse, swimming pool, a volleyball court and a total of 572 parking spaces.
“The acquisition of Lux is a great start to 2018 after a highly successful 2017 in which PAC acquired 13 Class A multifamily and student housing communities totaling over 3,200 units and originated five real estate investment loans for the development of Class A multifamily and student housing communities,” said Jeff Sherman, executive vice president at PAC, in a prepared statement.
The apartment community is minutes away from the intersection of Atlantic and Keman Boulevards, which features a Walmart Supercenter and various other outlets, retailers and restaurants. Several elementary and middle schools are within a three-mile radius of Lux, while Jacksonville University is about eight miles away. The city is home to many large employers, such as CSX, Bank of America, Publix, Deutsche Bank and the U.S. Navy. Downtown can be reached in about 20 minutes, via Atlantic Boulevard.
The two adjacent properties owned by PAC bring its total Jacksonville intracoastal footprint to more than 550 units. The company states that it seeks to grow its portfolio with similar acquisitions and translate it into sustainable cash flows.
“This acquisition creates operational efficiencies across the two properties and grows our market presence in the highly desirable intracoastal West area of Jacksonville,” said John Williams, CEO of PAC, in prepared remarks.
Image courtesy of Yardi Matrix