BILOXI, MS-A Hollywood, FL-based investment group has taken its first step to spending $100 million in one year on multifamily acquisitions. The first deed, the 240-unit Grande View Apartments, has changed hands for $21.6 million or $90,000 per unit.
JL Real Ventures, marking its first buy in the state, has acquired the 99%-leased complex at 151 Grande View Dr. at a 6.6% cap rate. According to managing partner Jordan Kavana, the company is hoping to have at least 1,500 units under contract in Mississippi, Louisiana and Alabama by year's end.
The company is targeting multifamily assets that are undercapitalized or have deferred maintenance in markets with growth potential. "Our primary focus is C-plus or B-minus assets in A locations," Kavana says. "This happens to be an A deal, but an opportunistic one, which is why we did it." He says there are other properties under contract, with two scheduled to close in 2007.
The three states are being targeted because of their growth, particularly in the wake of Hurricanes Rita and Katrina. "This is part of our overall value-add strategy," Kavana says.
The new owner plans to pace the four-year-old Grande View Apartments, situated on 17 acres, through $700,000 of exterior upgrades. The complex consists of one-, two-, and three-bedroom apartments measuring from 919 sf to 1,561 sf. The monthly rents are $790 to $1,025.
Miami-based Terra Nova represented the seller of record, BCOM Investment Adviser LLLP, also in Miami. Kavana and JL Real Ventures managing partner Larry Baum negotiated their side of the deal, which included financing from Bank of America. Mitchell Management Inc., an affiliate of Mobile, AL-based Mitchell Co. Inc., will continue to manage and lease the complex.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.