GlobeSt.com UPDATE: Tarragon Closes $54M Apt. Deal in Jacksonville

Tarragon paid about $121,396 per unit for the one-year-old, 98%-leased multifamily property on Touchton Road in the city's fast-growing Southside neighborhood. The property was on the market 30 days. Madison at Deerwood was one of four townhouse and apartment communities Friedman had under contract with separate sellers in December.

Friedman told GlobeSt.com at the time he expected the four-property acquisition to generate gross condo unit sales of at least $250 million over the next two years and deliver a 26% gross return to shareholders after the properties are converted to condominiums.

Tarragon South vice president Tony Martin tells GlobeSt.com the deal was done at this time because "Jacksonville is an emerging market and the Southside's Tinsel town area is growing rapidly." Martin says the acquisition brings Tarragon South's portfolio to 13 properties with 4,200 apartment units.

Jeff Morris of Rockwood Associates negotiated for Epoch Properties in the Madison at Deerwood transaction. Martin represented Tarragon South.

Besides Madison at Deerwood, the three other properties Tarragon is acquiring this quarter are the 388-unit, nine-year-old Yacht Club at Hypoloxo, a West Palm Beach suburb; the two-month-old, 76-unit Arlington Park Town Homes at Westchase in Tampa; and the 315-unit, two year-old Georgetown at North Village in Celebration.

In Orlando, Tarragon has started condominium sales at the Hamptons, formerly Park Avenue at MetroWest, a 743-unit apartment community. Tarragon acquired the Hamptons in November 2004 in a joint venture with SunVest Communities LLC of Florida for $88 million. Tarragon's Friedman forecasts the total sellout of the converted units at $137 million.

"This conversion is aimed at the heart of the lifestyle condominium market in Orlando," he says. "The affordably priced units, ranging from $130,000 to $230,000, are meeting a vibrant demand, as evidenced by the sale of more than 200 units during the first week and a priority list of over 1,500 prospective buyers."

The homes will be delivered in two phases with the first phase totaling 375 units. "We anticipated closings to begin in March and expect sales of 30 homes per month, once the initial rush is over," Friedman adds.