Hampshire Properties Buys Jacksonville Community for $64M

This deal marks one of the largest value-add transactions in 2020 for the Jacksonville MSA.
St. Johns Plantation. Image courtesy of Newmark

Hampshire Properties has acquired a Jacksonville, Fla., community for $64 million in one of the largest value-add transactions in 2020 for the Jacksonville MSA. The investment firm acquired St. Johns Plantation from DRA Advisors with the help of a $48 million Fannie Mae acquisition loan, according to Yardi Matrix data.

The seller was represented by Newmark Multifamily’s Erik Bjornson and Tyler Nilsson while Newmark’s Matt Williams, James Maynard, Kyle Schlitt and Fernando Riboli from the Debt & Structured Finance Group arranged the financing for Hampshire.

The 400-unit garden style community offers one-, two- and three-bedroom floorplans that range in size from 743 to 1,311 square feet. The community’s amenities include a business center, car care center, resident lounge, fitness center, community playground, grilling and picnic areas, and two swimming pools. St. Johns was 96 percent occupied at the time of sale, according to Newmark Multifamily.

The high occupancy rate isn’t exclusive to Hampshire’s new property as Bjornson said in prepared remarks that Jacksonville’s Southside submarket had strong performance throughout the COVID-19 pandemic where rent collections and occupancy remained above 95 percent each month.

ADDING VALUE TO THE UNDERVALUED

Bjornson also said in prepared remarks that the seller owned St. Johns for eight years and kept the property well maintained. However, Hampshire Properties is planning to implement a value-add program that will upgrade the interiors of the rental units.

According to the firm’s investment strategy, Hampshire looks for worthy but undervalued assets with significant growth opportunities. Last year, the firm sold off a 365-unit property in Suitland, Md., to Castle Lanterra Properties, after completing a $1.9 million renovation.