JACKSONVILLE, FL—Jacksonville is getting another multifamily project. LandSouth Construction just broke ground on a $4 million apartment community on Jacksonville's Westside called Village on Wiley.
The multifamily project sits on 4.3 acres and offers 43 units in 12 buildings. Doors should open at Village on Wiley next summer.
Ability Housing of Northeast Florida, a not-for-profit in Northeast Florida that focuses on developing affordable housing for those at risk of homelessness and adults with disabilities, is behind the project. Florida Housing Finance Corporation is funding the multifamily buildings.
On the investment front, Jacksonville saw one of the largest multifamily complex sales in the metro in November. Olympus Property Management snapped up a two-property multifamily portfolio there for $62 million. CBRE Capital Markets represented the seller, Atlanta-based Cortland Partners.
“This market-leading transaction only confirms the sustainability of Jacksonville's improving fundamentals, and the viability of the multifamily sector here,” says Brian Moulder, senior vice president of CBRE Capital Markets, Multifamily. “Rents in Jacksonville are forecasted to increase about 3% each year for the next five years, and average occupancy should hold strong in the 92% to 93% range.”
On the capital markets front, 22 Lantern successfully completed a multi-year turnaround strategy on Lantern Square Apartments, a failed condo conversion project in Jacksonville. Prudential Mortgage Capital Company loaned Lantern $18.1 million in a CMBS transaction.
What should we expect in 2015? The combined Tampa Bay, Orlando, and Jacksonville markets are seeing 25,000 units recently completed or under construction with an additional 5,200 planned.
“Rents are above pre-recession levels and don't show signs of abating,” says ARA principal Klann. “Occupancy throughout Florida remains above 95%. In addition, the condo market is strengthening and converters are back in the market, looking for multifamily product to reposition as for-sale, which will further constrain supply. This shortage is due partly to changing demographics, the fact that 60,000 rental units were converted to condominiums in the last cycle
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