Jacksonville apartment market still “darling”
While the rest of the commercial real estate market remains sluggish, Jacksonville’s apartment market is continuing its hot streak.
The same factors that’ve been driving the apartment market will continue to push its growth in 2013: Low interest rate debt for investors, new household formation and the tight lending restrictions on single-family mortgages.
“The debt environment’s a little more competitive with life companies and banks entering the scene,” Wilcox said. “This year, they had marching orders to put more multifamily loans on the books, so that’ll make the lending environment more competitive, before it was just Freddie Mac and Fannie Mae.
“The market will be just as active this year if not more than last year. There are several deals under agreement right now and you will see continued transaction activity this year, probably with the same number of closings, but maybe not as heavy a dollar volume.”
On Thursday, ARA closed a total of $74 million in apartment transactions in the Jacksonville area:
Tampa-based Landmark Residential purchased two more apartment properties from Equity Residential, which is exiting several markets, including Jacksonville, to focus on large core markets like New York City and San Francisco. In November, Landmark acquired a $72.5 million Jacksonville apartment portfoliofrom EQR.
Landmark also bought the 272-unit Mariners Wharf in Orange Park for $23.9 million or $87,867 per unit and the 288-unit Bridgewater at Wells Crossing for $23.6 million or $81,944 per unit.
ARA also represented Investment Management Trust in the sale of the 464-unit Preserve at Cedar River for $15 million or $32,327 per unit to Princeton Enterprises.
The brokerage firm also represented Canadian Apartment Properties Real Estate Investment Trust in the sale of the 216-unit Lakes of Mayport to BH Equities for $11.4 million or $52,777 per unit.