JACKSONVILLE, FL – Miami-based PIA Residential and Des Moines, Iowa BH Equities have acquired St. Johns Pointe Apartments, a 284-unit rental community in the city's Orange Park submarket, for $ 33.4 million from WRH Realty Services in Tampa acquired.
The one and two story garden-style apartment complex is located at 114 Old Orange Park Road, 20 minutes from downtown Jacksonville. PIA Residential says it will invest more than $ 3 million in capital improvements for the units and community facilities.
"We've looked at apartment buildings in Jacksonville for the past two years and we're continuing our search in established neighborhoods that don't have much space for new builds to stifle competition," said Saul Levy, managing partner for acquisitions.
St. Johns Pointe was built between 1968 and 1974 and is a "huge value investment opportunity" in the Orange Park submarket in Jacksonville. With numerous community amenities and a variety of well-designed floor plans, St. Johns Pointe is well positioned for interior renovations. The previous owner has partially renovated 16% of the units, with 84% of the units having mostly original interiors. There is the possibility of bringing all 284 units to a similar level that is comparable to the properties in the area.
According to Levy, the apartments were "well maintained by the seller," WRH Realty. Select units have stainless steel kitchen appliances, floorboards, upgraded lighting fixtures and countertops, and washer-dryer connections. Other units will be upgraded similarly. All apartments have deep walk-in closets.
Levy notes that the rental community is less than 10 minutes from Naval Air Station (NAS) with 25,000 workplaces, Orange Park Medical Center with 1,600 workplaces, and Orange Park Mall, which is home to over 120 stores, including top Retailers such as Belk, Dillard & # 39; s, Dick & # 39; s Sporting Goods and Old Navy.
This is the first time PIA and BH have teamed up on a deal. BH Management Services provides property management services for the property. "We have a productive relationship with BH," adds Levy. “BH brings years of experience and a first-class reputation to the partnership. We bring an experienced team and close relationships with family offices that made up the capital. We look forward to building our relationship. "
Danny Kattan, Managing Partner of Capital Markets, said: “Despite general concerns about the impact of COVID and the election, our investor base was very excited to participate in this acquisition. Our track record of getting most of the return from cash flow, and not necessarily from future appreciation, has created a following of investors who are very pleased with our conservative underwriting. "
As the political environment in various Latin American countries has deteriorated, Latin American investors are looking for real estate investments in the US as a safe haven for their money, Kattan adds. "The number of our Latin American investors has tripled in the last 2 years. We are well on the way to acquiring 1,000 units in 2021."
Erik Bjornson, senior managing director for Newmark's Jacksonville Beach office, Knight Frank, the brokerage firm that represents WRH Realty, says that “The main attractions of the property are value creation, Orange Park Clay County's good school system, and the big one Apartments. In addition, the design and layout of St. Johns has proven itself. "