New York firm buys three Jacksonville apartment complexes for close to $48 million

A New York firm has purchased three Jacksonville apartment complexes for close to $48 million.

Beachwold Residential paid $21.8 million for Vintage at Plantation Bay Apartments, a 240-unit, 13-building complex at 7740 Plantation Bay Drive on the Westside; $19 million for Kendall Court Apartments, a 360-unit, 15-buildling complex at 10535 Lem Turner Road; $6.95 million for Maple Crest Townhomes, a 20-building, 150-unit complex at 11050 Harts Road.

All three were purchased from different sellers.

Vintage at Plantation Bay was actually developed by Beachwold's parent company, Tarragon, back in 2001.

"We've always had our eye on it," said Gideon Friedman, managing member of Beachwold. "We sold it at the bottom of the market and think it's currently undervalued."

When Tarragon built the apartments, they overlooked the Course at Westland, an 18-hole golf course. But that, like many courses, closed.

"That ruined our view, which was a bummer," Friedman said. "They were building houses there, but in the recession, many were half-built and investor owned. But that's resumed again and it's looking cleaner and nicer."

Meanwhile, the Collins Road interchange at Interstate 295 has opened right next to the apartments.

The other two complexes are in North Jacksonville.

"They're not too far from the airport," Friedman said. "That area was struggling, but it's come out of the recession pretty strong. The airport is growing, you've got Anheuser-Busch."

All three complexes have occupancy rates of around 95 percent, he said, but the company plans to spend at least $2 million on renovations.

Beachwold has put more of its Florida focus on Tampa and Orlando, he said, buying seven or eight properties in the past three years. Now it's turned its attention to Jacksonville. Friedman said he's got offers out on several other complexes in the area.

"We just thought [Jacksonville] got hit very hard in the recession," he said, "and maybe took a little longer to come back than some cities, where you got back to 2007 values earlier. But now it's catching up."

Brian Moulder, vice president for CBRE who brokered the Vintage sale, agreed.

"I think there's still runway left, more potential left," he said. "We're not at the peak yet. You can still buy at good value."

Maple Crest last sold for $7.5 million in 2007. Vintage at Plantation Bay last sold for $17.1 million in 2011. This is the first time Kendall Court has been sold since it was built in 1999.

Roger Bull: (904) 359-4296