Waypoint Sells Jacksonville Apartments for $66M

Volaris West Kernan. Image courtesy of Summit Contracting Group

RSE Capital Partners has paid $66.3 million for Volaris West Kernan, a 301-unit Class A community in Jacksonville, Fla., according to records filed with Duval County. KeyBank financed the purchase with a $36.4 million loan. The seller was Waypoint Residential. 

The property at 12517 Beach Blvd. opened its doors early last year. Waypoint developed the garden-style community’s 17 buildings, backed by $34.6 million in construction financing from Truist Bank, according to Yardi Matrix. Summit Contracting Group was the general contractor.

Located on 26.3 acres in a suburban setting 10 miles east of downtown Jacksonville, the property is at the intersection of Beach and Kernan boulevards. A Publix-anchored retail center is opposite the community, and the University of North Florida’s main campus is within 3 miles.

The community has a mix of one-, two- and three-bedroom units, with floorplans ranging from 644 to 1,357 square feet. Amenities include an indoor dog spa, a clubhouse and a fitness center, with private detached garages available for an additional monthly fee.

Positioned for rapid growth

Jacksonville’s multifamily market continues to make strides, bolstered by strong population growth and low costs of living. Rent growth hit 4.4 percent year-over-year through March, greatly outperforming the national increase of 0.6 percent during the same period, according to Yardi Matrix data. Investment has kept pace, with this year’s transaction volume already upwards of $200 million, following a banner 2020 when activity jumped by more than 20 percent.

Development activity in Jacksonville is also trending upwards, with 5,201 units under construction in mid-April, the same data provider shows. Most are slated for completion this year, which, along with the 701 units already delivered in 2021, could lead to a record year for Jacksonville’s multifamily development.