Jacksonville Value-Add Community Sells for $12M

The seller, Avesta Communities, acquired the Class C asset out of a foreclosure action in early 2012 for $3.4 million.
Lakewood Oaks Apartments

Avesta Communities has sold San Jose Apartments, a 138-unit Class C community in Jacksonville, Fla., to Boardwalk Wealth for $12.1 million, according to public records. The Bancorp Bank originated $10.7 million in acquisition financing for the buyer. The loan is set to mature in April 2024.

Boardwalk has rebranded the community as Lakewood Oaks Apartments. ResProp Management, which had overseen operations under the previous owner, will continue in this role following the sale. Additionally, the firm will oversee construction management for the redevelopment of the asset.

The property last changed hands in March 2012, when Avesta purchased the community for $3.4 million, per data from Yardi Matrix. The seller in that deal, Fannie Mae, had taken control of the property after foreclosing on a $2.4 million loan in 2010.

Swimming pool at Lakewood Oaks

Located at 3534 Smithfield Road in the city’s Bowden submarket, the community’s 18 two-story buildings are situated 1.5 miles west of Interstate 95, 7 miles south of downtown Jacksonville. The property is a short walk from a shopping center with a variety of retail options, including CVS, Dollar Tree and LA Fitness.

The community contains a mix of studio, one-, two- and three-bedroom apartments, with floorplans ranging from 400 to 1,300 square feet. Amenities include a swimming pool, laundry facilities, a playground and a clubhouse.

Earlier in February, DEL Development traded a nearby 200-unit asset for $15.3 million. The new owner plans to invest more than $2 million in capital improvements.

Images courtesy of ResProp Management