Value-Add Jacksonville Apartment Trades to New-to-Market Buyer

JACKSONVILLE, FL—ROI Capital Group has purchased Arbor Place Apartment Homes, a 206-unit multifamily property here from an undisclosed seller. Cushman & Wakefield arranged the sale of the property in the fast-growing Southside submarket and the asset presents a significant value-add opportunity for the new-to-market buyer.

Arbor Place, at 5800 Barnes Road S., is a two-story, garden-style community with a mix of one- and two-bedroom units. The average unit size is 850 square feet, and the average market rent is $768. The property was 95% occupied at the time of sale.

“There has been significant interest in the Jacksonville market as a result of its strong job, rent and population growth that has outpaced national averages,” Cushman & Wakefield Executive Managing Director Mike Donaldson tells GlobeSt.com. “Jacksonville continues to have an abundance of value-add opportunities coming on market, which has put the metro on the top of many buyer’s target lists right now and should lead to a high velocity year of sales for the area.”

The community was built in 1970, and previous ownership recently renovated 54 of the units (approximately 26%) with black kitchen appliances, resurfaced countertops and wood-style vinyl flooring. Community amenities include two swimming pools with sundecks as well as a dog park, playground, covered firepit and outdoor fitness area.

“Arbor Place presents a tremendous value-add opportunity through the ability to raise rents by almost $300 through the completion of a comprehensive renovation program,” said Donaldson. “The buyer, who is new to the Jacksonville market, was drawn to the high rent and employment growth taking place in the area and saw a great opportunity to capitalize on a largely unrenovated property close to Interstate 95 and within minutes of major employment and Class A retail.”