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Multi-Family Market Summary & Activity Update Summer 2014
Jacksonville, Fl
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jacksonvilleIntroduction
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.
ContentsIntroduction 2
market Commentary 3
economic overview 4
sales transactions 5
proposed Development 8
Why Choose Capstone? 9
Enon WinklerPartner
Jad RichaInvestment Advisor
Brian HunsickerInvestment Advisor
Deucie BiesInvestment Advisor
Orlando Office2221 Lee road suite 21 C orlando, FL 32789
Tampa Office208 n. armenia ave. suite B tampa, FL 33609
FlORiDa TEam
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Quality of life
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.
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.
Tourism
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.
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 ClassClass Units Vacancy Rate avg. Sq. Ft. avg. Rent avg. Rent/Sq. Ft.
Lease-up 2,341 21.6% 1,045 $1,216 $1.16a (1-5 Years in Age) 5,973 5.4% 1,105 $1,122 $1.02B (6-15 Years in Age) 13,923 5.7% 1,054 $955 $0.91C (16-30 Years in Age) 25,822 6.2% 933 $831 $0.89C- (30+ Years in Age) 24,561 9.5% 926 $684 $0.74Stabilized averages 70,279 7.2% 969 $829 $0.86Totals/averages 72,620 7.7% 972 $841 $0.87
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Jacksonville's cost of living is 8.50% lower than the U.s. average.
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)Rank Company industry 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 Population2010 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 12,895Source: U.S. Census Bureau
Employment / Economic announcements
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.
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Smost Recent Sales Transactions 100+ Units
Community YOC 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
Sale
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jacksonvillemost Recent Sales Transactions 100+ Units
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
SaleS Tra
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244 227
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Class A Class B Class C AVERAGE
Average # of Units Per Transaction
Class A
Class B
Class C
AVERAGE
2006
1991
1973
1983
1950
1960
1970
1980
1990
2000
2010
Class A Class B Class C AVERAGE
Average Year of Construction
Class A
Class B
Class C
AVERAGE
$33,749,100
$19,946,865
$9,433,247
$16,129,914
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
Class A Class B Class C AVERAGE
Average Transaction Sales Price
Class A
Class B
Class C
AVERAGE
$117,961
$70,664
$36,739
$58,785
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Class A Class B Class C AVERAGE
Average Price Per Unit
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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eCommunities Proposed (100 Units and above)
Developer Community Units Road/intersection SubmarketDavis Development sorrel 290 abess Boulevard arlington
rohdie Group Granbay at Flagler Center 308 Us Highway 1 Baymeadows
Killashee Investments Loree 300 aC skinner parkway Baymeadows
pollack shores real estate Brooklyn riverside 310 magnolia street Baymeadows
Communities Under Construction (100 Units and above)Developer Community Units Road/intersection Submarket
perimeter realty 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
Fairfield residential the Views at Harbortown 298 atlantic Blvd southeast
Bluewater Row (Under Construction)Brooklyn Riverside (Proposed) 220 Riverside (Under Construction)
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Carolinas Georgia Virginia Tennessee Kentucky alabama Florida West Virginia
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.