jacksonville, fl - Capstone Apartment

Jacksonville , FL
Multi-Family Market Summary & Activity Update
Summer 2014
jacksonville
Contents
Introduction
Introduction2
Market Commentary
3
Economic Overview
4
Sales Transactions
5
Proposed Development
8
Why Choose Capstone?
9
Capstone Apartment Partners prides itself on the continual value contributions we are
able to offer our industry, and thus we produce periodic Multifamily Market Summaries to further
inform the clients and industry we serve. Capstone believes that this market snapshot will be
beneficial to current owners, operators, investors, and other industry professionals who are active
in the Jacksonville MSA, as well as others who are looking to break into this market.
Florida Team
Orlando Office
Tampa Office
2221 Lee Road  Suite 21 C  Orlando, FL 32789
208 N. Armenia Ave.  Suite B  Tampa, FL 33609
Enon Winkler
Deucie Bies
Jad Richa
Brian Hunsicker
Partner
407.616.0250
[email protected]
Investment Advisor
407.470.9030
[email protected]
Investment Advisor
727.282.5547
[email protected]
Investment Advisor
727.631.5870
[email protected]
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jacksonville
Tourism
Jacksonville's community is full of diversity and vibrancy. This
vibrancy can be found throughout the city. Jacksonville's unique
entertainment and cultural options create a real sense of character.
Many assets contribute to the city's superb quality of life and
continuing development as a first-rate business and travel destination.
Jacksonville is a great city to work, live and raise a family - with its
strong economy and reasonable cost of living.
Jacksonville, perfectly positioned along the Atlantic Ocean in
northeast Florida, is a natural paradise for visitors looking for an
affordable yet luxurious destination. Whether you are looking to
discover the undiscovered, ignite romance, reconnect with family,
or be inspired by the city’s cultural offerings or vivid sunrises,
anything is possible in Jacksonville.
Nice Doing Business with You
Despite slow growth compared to other major cities in the Southeast,
the Jacksonville economy continues to make steady headway. The
unemployment rate in the region has increased slightly to 5.8%,
however, this is an improvement from 7.0% a year ago. Jacksonville’s
Harbor Deepening project is in it’s preliminary stages and is expected
to strengthen the economy and create jobs in the future. They plan
on starting work by 2016.
Class
Lease-up
A (1-5 Years in Age)
B (6-15 Years in Age)
C (16-30 Years in Age)
C- (30+ Years in Age)
Stabilized Averages
Totals/Averages
Units
2,341
5,973
13,923
25,822
24,561
70,279
72,620
Multi-Family Fundamentals
The vacancy rate in Jacksonville has improved to 7.7% over the
past six months. This is the lowest recorded vacancy in seven years.
Development activity remains modest for the region, with 1,183 units
under construction and another 1,288 proposed to be built. Demand
is expected to remain positive and exceed supply levels over the
next 18 months. Rental rates are expected to increase 2.5-3.0% over
the next year. Occupancy rates are forecast to surpass 94% in 2015.
Apartment Comparison by Class
Vacancy Rate
Avg. Sq. Ft.
21.6%
5.4%
5.7%
6.2%
9.5%
7.2%
7.7%
1,045
1,105
1,054
933
926
969
972
Avg. Rent
Avg. Rent/Sq. Ft.
$1,216
$1,122
$955
$831
$684
$829
$841
$1.16
$1.02
$0.91
$0.89
$0.74
$0.86
$0.87
Market Commentary
Quality of Life
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jacksonville
Employment
Jacksonville's cost of living is 8.50% lower than the U.S. average.
Employment / Economic Announcements
Economic Overview
 Convergys, a telecommunications company, has announced
plans to add 250 new jobs in Jacksonville.
 Citizens Property Insurance Corporation, a national insurance
provider has plans to move 150 jobs from its operations in
Tampa and Tallahassee to Jacksonville as it consolidates its
information technology operations.
 Selene Finance, a national mortgage services provider, has
plans to bring 105 well-paying jobs to the Jacksonville region.
 iDeal Aluminum, is moving its headquarters and
manufacturing plant to Jacksonville, adding 90 jobs in the
process.
 Adecco S.A., a human resources company, is relocating its
headquarters to Jacksonville, and will add 185 new jobs in
the process.
 Cenvoe, an envelope manufacturer, has plans to lay off 133
employees from its facility in the area.
The unemployment rate in Jacksonville is 5.80% which is lower than both state
and national averages (6.3% and 6.2%, respectively). Recent job growth is positive
having recently increased by 4.96%.
Major Employers (non-government)
Company
Industry
Rank
Employment
1
Baptist Health
Healthcare
8,270
2
Bank of America Merrill Lynch
Banking and Investments
6,400
3
Blue Cross Blue Shield of FL
Health Insurance
6,000
4
Citi
Consumer Finance
5,000
5
Mayo Clinic
Healthcare
4,970
6
United Parcel Service
Global Parcel Delivery
4,100
7
St. Vincent's Medical Center
Healthcare
4,000
8
Shands Jacksonville Medical Center
Healthcare
3,790
9
CSX
Railroad
3,300
10
JP Morgan Chase
Banking
3,200
Wages & Population
Most recent reports indicate a population of 586,900 employed residents and an average annual median household income of $42,380. This
is slightly less than the US household median income of $46,326 reported by the USDTA.
Historical Population
2010
2011
2012
2013 (est)
Jacksonville (City)
821,784
828,789
836,608
842,583
Jacksonville (Beach)
21,362
21,487
21,702
21,823
Atlantic Beach
12,655
12,729
12,870
12,895
Source: U.S. Census Bureau
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jacksonville
Most Recent Sales Transactions 100+ Units
Community
City
Sale Date
Units
Sale Price
Price Per Unit
Canopy at Belfort Park
2013
Jacksonville
7/16/14
192
$21,000,000
$109,375
Palmetto at Oakleaf Plantation
2013
Neptune Beach
6/25/14
330
$35,000,000
$106,061
Reserve at Wynnfield Lakes
2009
Jacksonville
6/25/14
204
$27,300,000
$133,824
Aventine at Town Center
1995
Jacksonville
6/18/14
320
$40,900,000
$127,813
Spinnaker Reach Apartments
1996
Jacksonville
6/16/14
288
$13,800,000
$47,917
San Pablo
1974
Jacksonville
6/16/14
200
$12,000,000
$60,000
Riverview Apartments
1976
Jacksonville
6/5/14
304
$8,800,000
$28,947
Casa Del Mar
1983
Jacksonville
5/1/14
144
$12,150,000
$84,375
Avesta Mandarin
1974
Jacksonville
5/1/14
400
$15,800,000
$39,401
Villages Of Baymeadows
1969
Jacksonville
5/1/14
904
$71,850,000
$79,480
Auburn Glen
1974
Jacksonville
3/14/14
251
$11,500,000
$45,817
Mallard's Landing
1964
Jacksonville
3/1/14
200
$3,200,000
$16,000
Island Club
1986
Atlantic Beach
1/31/14
204
$13,025,000
$63,848
Highlander Apartments
1967
Jacksonville
1/30/14
104
$2,300,000
$22,115
Cross Creek
1974
Jacksonville
1/29/14
292
$8,710,000
$29,829
The Palms at Beach Blvd.
1974
Jacksonville
1/27/14
360
$14,300,000
$39,722
Whispering Oaks
1963
Jacksonville
1/27/14
128
$3,500,000
$27,344
Woodcreek
1975
Jacksonville
1/16/14
260
$13,525,000
$52,019
Indigo at Bartram Park
2007
Jacksonville
12/30/13
323
$38,000,000
$117,647
Princeton Square
1984
Jacksonville
12/4/13
288
$14,175,000
$49,219
Atlantica Condos
1987
Atlantic Beach
12/3/13
100
$5,500,000
$55,000
Pelican Pointe
1987
Jacksonville
11/6/13
160
$3,000,000
$18,750
Sales Transactions
YOC
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Most Recent Sales Transactions 100+ Units
Sales Transactions
Community
YOC
City
Sale Date
Units
Sale Price
Price Per Unit
Villas at Kings Crossing I & II
1984
Jacksonville
11/6/13
133
$2,350,000
$17,669
Stonewood Apartments
1978
Jacksonville
11/6/13
117
$2,600,000
$22,222
Creekwood
1974
Jacksonville
11/5/13
175
$8,000,000
$45,714
Southpoint Place
1970
Jacksonville
10/31/13
108
$3,500,000
$32,407
Eagles Pointe
1972
Jacksonville
10/1/13
186
$6,550,000
$35,215
The Strand at St. Johns
2007
Jacksonville
9/30/13
295
$53,300,000
$180,677
Marsh Oaks
1986
Atlantic Beach
9/16/13
120
$7,100,000
$59,166
Deerfield
1974
Jacksonville
8/28/13
256
$10,650,000
$41,602
Tivoli (fka Mandarin Pines)
1987
Jacksonville
8/27/13
263
$6,700,000
$25,475
The Huntington at Hidden Hills
1986
Jacksonville
8/14/13
224
$12,500,000
$55,804
Southern Pines
1989
Jacksonville
8/13/13
200
$17,675,000
$88,375
Chelsea Courtyards
1964
Jacksonville
7/31/13
138
$4,200,000
$30,435
Sea Oats Apartments
1974
Atlantic Beach
7/29/13
112
$3,800,000
$33,929
Village Walk
2003
Jacksonville
7/23/13
240
$30,100,000
$125,417
The Registry at Windsor Parke
1999
Jacksonville
7/15/13
260
$33,280,000
$128,000
Saddle Creek
2007
Jacksonville
7/8/13
288
$19,185,000
$66,615
The Reserve at Deerwood
1980
Jacksonville
7/1/13
226
$17,400,000
$76,991
The Paddock Club
1996
Jacksonville
6/18/13
440
$34,200,000
$77,727
San Juan Villas
1968
Jacksonville
6/18/13
118
$1,200,000
$10,169
Woodbridge at the Lake
1986
Jacksonville
6/3/13
188
$12,200,000
$64,894
Art Museum Apartments
1974
Jacksonville
5/28/13
176
$5,240,000
$29,773
Chase Oaks
1976
Jacksonville
5/21/13
246
$18,500,000
$75,203
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jacksonville
Average # of Units Per Transaction Average Year of Construction
350
300
2010
287
244
250
2000
241
227
AVERAGE
Class A
Class B
1980
Class C
100
1983
1973
Class C
AVERAGE
1970
1960
50
Class A
Class B
Class C
1950
AVERAGE
Class A
Average Transaction Sales Price
Class C
AVERAGE
Average Price Per Unit
$40,000,000
$140,000
$35,000,000 $33,749,100
$120,000
$30,000,000
$117,961
$100,000
$25,000,000
Class A
$19,946,865
$20,000,000
$16,129,914
$15,000,000
$80,000
Class B
Class A
$70,664
$58,785
$60,000
Class C
AVERAGE
$9,433,247
$10,000,000
Class B
Class C
AVERAGE
$36,739
$40,000
$20,000
$5,000,000
$0
Class B
Sales Transactions
Class B
150
1991
1990
Class A
200
0
2006
Class A
Class B
Class C
AVERAGE
$0
Class A
Class B
Class C
AVERAGE
Class A represents properties built from 2000-2014, Class B includes properties constructed from 1985-1999, and Class C signifies properties constructed in 1984 or earlier.
Averages are based on sales of 100+ units during the years of 2013 and 2014.
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Communities Proposed (100 Units and Above)
Community
Units
Road/Intersection
Developer
Davis Development
Rohdie Group
Sorrel
290
Abess Boulevard
Arlington
Granbay at Flagler Center
308
US Highway 1
Baymeadows
Loree
300
AC Skinner Parkway
Baymeadows
Brooklyn Riverside
310
Magnolia Street
Baymeadows
Killashee Investments
Development Pipeline
Pollack Shores Real Estate
Developer
Submarket
Communities Under Construction (100 Units and Above)
Community
Units
Road/Intersection
Perimeter Realty
Submarket
Spyglass
252
Homeplace Drive
Bay-Meadows
Tribridge Residential
Bluwater Row
170
Beach Boulevard
Beaches
Hallmark Partners
220 Riverside
294
Magnolia Street
Central
Inland Diversified
Deerwood Lake Lofts
130
Deerwood Lake Pkwy
South
The Views at Harbortown
298
Atlantic Blvd
Southeast
Fairfield Residential
Brooklyn Riverside (Proposed)
220 Riverside (Under Construction)
Bluewater Row (Under Construction)
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Carolinas
Georgia
Virginia
Tennessee
Kentucky
Alabama
Florida
West Virginia
Why Choose Capstone?
The People Sell the Deal
Capstone’s Southeast & Mid-Atlantic Investment Sales Team is among the market leaders within our industry sector
and respective region. We place client service above all else, and can guarantee that no one else will work smarter and
harder in achieving the highest level of results for our clients. We don’t rely on a logo to sell the deal, but rather utilize
the industry expertise and investment acumen, tremendous drive and work ethic, and unbeatable salesmanship of
the team members assigned to each project. At the end of the day, it’s the individuals that drive value and sell the deal,
and we know the capabilities of our individual team members are second to none.
Market Expertise & Product Niche
Capstone sits atop the private capital sector of multi-family investment sales for multiple reasons. Our deliberate and concentrated focus
and expertise in not just the primary markets of the Southeast & Mid-Atlantic, but also the secondary and tertiary markets within our region,
identifies us as the ideal candidate for such assignments. Capstone’s investment sales team has completed a multitude of transactions
across the primary, secondary, and tertiary markets of the Southeast & Mid-Atlantic, and our track record of success can be attributed to our
comprehensive coverage and expertise among these markets, as well as our relationships with the owners and investors who remain active
in this environment.
National Exposure via Cutting Edge Technology
Capstone has developed and maintains industry leading national databases, expansive information delivery methodologies, and various
proprietary activity tracking systems. These tools are utilized daily by the investment sales team, analysts, and back-office support staff
allowing for optimal operational efficiency. This enables Capstone’s investment brokerage team to spend nearly all of its time servicing clients,
interacting with industry players and active asset traders, and promoting transactions.
Reputation and Results
Capstone prides itself on its impeccable industry reputation and the core values and behaviors of the firm that drive daily operations. The
firm possesses an unblemished reputation and track record industry-wide, and, as such, the firm’s trusted relationships among the apartment
investment community continue to facilitate seamless, fluid, and successful sales transactions.
** Information in this report has been provided by the following resources: The Jacksonville Real Data Report July 2014, Jacksonville Business Journal, Jacksonville Office of Economic
Development, coj.net, REIS Report, Costar, Loopnet, Bureau of Labor Statistics, U.S. Census Bureau, county tax records, and various multi-family industry contacts. Cover Photo by James
Willamor from www.flickr.com/photos/bz3rk/5687437936.
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