Jacksonville Apartment Trades in Off-Market Deal

JACKSONVILLE, FL—New York City-based Topaz Capital Group, has acquired The Plaza Apartments, a 281-unit apartment complex in the University Park area of Jacksonville. The deal was brokered in an off market transaction by Greg Rainey and his team from Berkadia.

Marc Hershberg, Topaz Capital’s managing director and CEO, tells GlobeSt.com. that the property is in an appealing area of the city near Jacksonville University that is seeing major gentrification. “It is right by the university, which is bringing in younger people,” Herschberg says. “The talent pool in the area is increasing, which we believe will eventually bring more housing to the area. We saw this property as being one of the untapped properties in the area in terms of rehab potential.”

Hershberg says Topaz will give the exterior a “facelift,” and add a gym and other amenities the property currently does not have. That will also include a small library and a dog park.

Topaz is “bullish” on the Southeast, Hershberg says, and expects to announce more deals in 2020.

The property was built in 1974 and has a mix of one-bedroom, two-bedroom and three-bedroom units that feature full appliances, oversized closets and other amenities. Community wide features include two laundry facilities, a swimming pool and three grilling station gazebos.

Topaz plans to invest $2 million to upgrade the property and is in the process of rebranding it as Topaz Plaza JAX. Upgrades will include updating all interiors and common areas, including pools and recreational areas. Arbor Realty provided the Fannie Mae loan. The seller was not disclosed.

So far this year, Topaz Capital has acquired more than 1,000 units of multifamily in markets throughout the Southeast, Midwest, and Northeast, and has stated it has plans to expand its portfolio further in 2020.