1. automotive and vehicles
2. campers and rvs

Jacksonville, FL
Multi-Family Market Summary Spring 2015
JACKSONVILLE
Contents
Introduction
Introduction2
Market Commentary
3
Economic Overview
4
Sales Transactions
5
Development Pipeline
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 Multi-Family 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, FL MSA as well as others who are looking to break into this market.
FLORIDA TEAM
Orlando Office
Tampa Office
111 N. Orange Ave.  Suite 1125
Orlando, FL 32801
208 N. Armenia Ave.  Suite B
Tampa, FL 33609
Enon Winkler
Partner
407.616.0250
[email protected]
2
Deucie Bies
Jad Richa
Investment Advisor
407.470.9030
[email protected]
Investment Advisor
727.282.5547
[email protected]
Brian Hunsicker
Investment Advisor
727.631.5870
[email protected]
JACKSONVILLE
Quality of Life
Doing Business in Jacksonville
Rated by Expansion Management Magazine as a popular location
for corporate expansions and relocations, Jacksonville continues to
increase in stature in the national and international marketplace. Its
status as an intermodal transportation hub and a leading distribution
center, with a transportation network embracing port and air cargo
facilities, rail and trucking routes is a major attraction to companies. GE
Oil and Gas recently announced plans for opening a 510,000 squarefoot facility that will bring 500 new jobs to the area. The region boasts
Tourism
Jacksonville is perfectly situated along the Atlantic Ocean in
northeast Florida. The city's robust culture and paradise beaches
have a lot to offer visitors. It is also the perfect leisure destination for
visitors looking for an affordable yet luxurious vacation. It is a great
destination for anyone doing business as it offers a variety of venues
to host conferences and meetings.
Multi-Family Fundamentals
Demand for apartments continues to remain healthy in the Jacksonville
area with positive absorption of 610 units over the past six months and
2,132 units over the past year. The vacancy rate continues to improve
market-wide to 6.7%. The development pipeline remains in-line with
market demand with 1,873 units currently under construction and 694
proposed in the region. The Central and Baymeadows submarkets
make up 60% of the units under construction in Jacksonville. Samestore rents are up 3.1% from last year. Capstone anticipates vacancy
rates will continue to improve, and that rents will grow 2.5% - 3.5% in
the next 12 months.
Apartment Comparison by Class
Vacancy Rate
Avg. Sq. Ft.
Class
Units
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
875
5,087
15,597
25,188
25,001
70,873
17.9%
5.7%
5.8%
6.2%
8.0%
6.7%
Totals/Averages
71,748
6.9%
Avg. Rent
Avg. Rent/Sq. Ft.
1,056
1,072
1,061
946
929
974
$1,275
$1,190
$976
$862
$708
$856
$1.21
$1.11
$0.92
$0.91
$0.76
$0.88
975
$861
$0.88
MARKET COMMENTARY
As a rapidly growing municipality, Jacksonville has become a
recognized leader in residential and commercial growth. What
makes Jacksonville such an attractive place to live, is its mild climate,
reasonable cost of living and high quality of life. The region features
a myriad of parks and preservation lands, miles of beaches and
waterways, a major symphony orchestra, and access to professional
sports and entertainment facilities downtown. It is home to the 2005
Super Bowl champions, the Jacksonville Jaguars and is known as a
sports-loving city. Annually, residents enjoy a variety of special events
hosted by the city. Overall, Jacksonville is a great place to live, raise a
family, work, and start or expand a business.
a strong workforce of 585,900. The unemployment rate has fallen to
5.5% compared to 11% at the height of the great recession. Job growth
is expected to continue for the region going into 2015.
3
JACKSONVILLE
Employment
The unemployment rate in Jacksonville is 5.5%, which is lower than the state and
national rate at 5.8%. The market has experienced positive job growth of 25,000 jobs
over the past year.
ECONOMIC OVERVIEW
Recent Employment Announcements
GE Oil and Gas has announced plans to open
a 510,000 square-foot manufacturing facility
at AllianceFlorida Cecil Commerce Center in
Jacksonville. They will add 500 new jobs over the
next three years.
Rank
1
Naval Air Station
Military
25,240
2
Duval County Public School
Education
14,480
3
Naval Station Mayport
Military
9,000
4
City of Jacksonville
Government
8,820
5
Baptist Health
Healthcare
8,270
6
Bank of America
Financial
8,000
7
Florida Blue
Healthcare
6,500
8
Mayo Clinic
Healthcare
4,970
9
Citi
Financial
4,200
10
JP Morgan Chase
Financial
4,200
Deutsche Bank has opened an international
banking office in Jacksonville with plans to add
200 high-paying jobs over the next three years.
Volkswagen Group of America is moving its
southeastern U.S. import and distribution facility
to the Port of Jacksonville. More than 100 jobs
are expected to be created by the expansion.
Wages & Population
There are 586,900 employees in the Jacksonville MSA who earn a mean hourly wage of $20.38 and an average annual income of $42,380. In
comparison, the state and national annual income averages are $41,140 and $46,440, respectively.
Historical Population
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Jacksonville (City)
778,078
786,938
798,494
805,325
809,891
813,513
823,291
829,065
836,608
842,583
Jacksonville (MSA)
1,222,731
1,248,524
1,279,132
1,301,097
1,316,528
1,328,144
1,349,095
1,361,316
1,378,040
1,394,624
Florida
17,375,259
17,783,868
18,088,505
18,277,888
18,423,878
18,537,969
18,846,054
19,083,482
19,320,729 19,552,860
Source: U.S. Census Bureau
4
Jacksonville Major Employers (non-government)
Company
Industry
Employment
JACKSONVILLE
Community
Sales Transactions: 2014 and 2015
YOC
City
Sale Date
Units
Sale Price
Price Per Unit
1983
Jacksonville
1/23/2015
240
19,560,000
$81,500
Arelia James Island
2009
Jacksonville
12/3/2014
270
$37,900,000
$140,370
Stovall at Rivercity
2009
Jacksonville
10/30/2014
276
$31,000,000
$112,319
Heron Walk
1979
Jacksonville
10/24/2014
384
$15,250,000
$39,714
Remington at Ponte Vedra
1985
Jacksonville
10/24/2014
344
$35,350,000
$102,762
Jacksonville Heights
1969
Jacksonville
10/15/2014
172
$6,350,000
$36,919
Grassy Pond
1970
Jacksonville
10/13/2014
88
$1,627,500
$18,494
Flats at Kernan
2008
Jacksonville
10/1/2014
192
$29,840,000
$155,417
Mirador at River City
2008
Jacksonville
10/1/2014
276
$31,000,000
$112,319
Casa Grande
1965
Jacksonville
9/29/2014
87
$2,156,000
$24,782
Charter Landing
1974
Jacksonville
9/26/2014
332
$12,885,000
$38,810
Arbor Place
1970
Jacksonville
9/25/2014
206
$6,870,000
$33,350
Kings Trail
1968
Jacksonville
9/22/2014
320
$11,900,000
$37,188
Victoria Park
1986
Jacksonville
9/15/2014
520
$26,200,000
$50,385
Summerwind
1983
Jacksonville
8/28/2014
62
$1,609,600
$25,961
Colonial Forest
1970
Jacksonville
8/20/2014
174
$5,500,000
$31,609
Park at Regency
1985
Jacksonville
8/20/2014
159
$8,300,000
$52,201
Waterford at Mandarin
1989
Jacksonville
8/18/2014
432
$36,300,000
$84,028
Park at Blanding (Bellair)
1969
Jacksonville
8/18/2014
117
$7,200,000
$61,538
Four at Deerwood
2013
Jacksonville
8/14/2014
316
$49,900,000
$157,911
Ortega Pines
1974
Jacksonville
8/14/2014
152
$5,120,000
$33,684
Matthews Crossing
1973
Jacksonville
8/11/2014
1,086
$32,700,000
$30,110
Courtney Meadows
2001
Jacksonville
7/16/2014
276
$33,000,000
$119,565
Canopy at Belfort Park
2013
Jacksonville
7/15/2014
192
$21,319,000
$111,036
Heather Ridge
1969
Jacksonville
7/9/2014
120
$3,670,000
$30,583
Ultris Oakleaf Plantation
2013
Jacksonville
6/25/2014
328
$35,000,000
$106,707
SALES TRANSACTIONS
Park South at Deerwood
5
JACKSONVILLE
SALES TRANSACTIONS
Community
6
Sales Transactions: 2014 and 2015
YOC
City
Sale Date
Units
Sale Price
Price Per Unit
Reserve at Wynnfield Lakes
2008
Jacksonville
6/25/2014
204
$27,250,000
$133,578
Arium Town Center
1997
Jacksonville
6/18/2014
320
$40,900,000
$127,813
Spinnaker Reach
1996
Jacksonville
6/16/2014
288
$13,750,000
$47,743
Ghitas
1962
Jacksonville
6/6/2014
92
$1,228,000
$13,348
Riverview
1976
Jacksonville
6/5/2014
304
$8,834,100
$29,060
River City Place
1975
Jacksonville
6/3/2014
120
$4,200,000
$35,000
San Pablo
1974
Jacksonville
6/1/2014
200
$12,000,000
$60,000
River Oaks
1973
Jacksonville
5/29/2014
288
$7,350,000
$25,521
Villages of Bay Meadows
1983
Jacksonville
5/15/2014
144
$12,150,000
$84,375
Baymeadows
1969
Jacksonville
5/14/2014
904
$71,850,000
$79,480
Avesta Mandarin
1973
Jacksonville
5/14/2014
401
$15,800,000
$39,401
University Townhomes
1977
Jacksonville
3/18/2014
200
$3,200,000
$16,000
Auburn Glen
1974
Jacksonville
3/14/2014
250
$11,500,000
$46,000
Arium Atlantic Beach
1986
Jacksonville
1/31/2014
204
$13,025,000
$63,848
Cross Creek
1974
Jacksonville
1/29/2014
292
$8,710,000
$29,829
Whispering Oaks
1964
Jacksonville
1/27/2014
128
$3,500,000
$27,344
Woodcreek
1974
Jacksonville
1/16/2014
260
$13,525,000
$52,019
Highlander
1970
Jacksonville
1/30/2014
104
$2,300,000
$22,115
The Reserves at Beach Boulevard
1973
Jacksonville
1/1/2014
360
$14,300,000
$39,722
Spy Glass
Loree
220 Riverside
JACKSONVILLE
Average # of Units Per Transaction
350
Average Year of Construction
2020
324
300
262
259
2000
200
1990
150
1980
100
1970
50
1960
0
1950
Class B
Class C
AVERAGE
1989
1983
1973
Class A
Class C
AVERAGE
Average Price Per Unit
Average Transaction Sales Price
$35,000,000
Class B
$140,000
$32,912,111
$127,692
$120,000
$30,000,000
$24,832,143
$25,000,000
$100,000
$20,000,000
$15,000,000
$75,540
$80,000
$17,619,538
$62,255
SALES TRANSACTIONS
250
Class A
2009
2010
271
$60,000
$11,132,593
$10,000,000
$40,000
$5,000,000
$20,000
$38,740
$0
$0
Class A
Class B
Class C
AVERAGE
Class A
Class B
Class C
AVERAGE
Class A represents renovated properties and properties built from 2000-2014, Class B includes properties constructed from 1985-1999, and Class C signifies properties constructed in 1984 or earlier.
7
JACKSONVILLE
DEVELOPMENT PIPELINE
Views at Harbortown
8
Developer
Communities Proposed (100 Units and Above)
Community
Units
Road/Intersection
Submarket
Perimeter Realty
Galleria Club
254
8680 Baymeadows Rd.
Baymeadow
Killashee Investments
Loree
300
AC Skinner Pkwy./Southside Blvd.
Baymeadow
Hallmark Partners
220 Riverside
140 (294 U/C)
220 Riverside Dr.
Central
Communities Under Construction (100 Units and Above)
Developer
Community
Units
Road/Intersection
Submarket
Davis Development
Sorrel
290
12001 Abess Blvd.
Arlington
Rhodie Group
Gran Bay
272 (38 Complete)
Gran Bay Pkwy.
Baymeadows
Perimeter Realty
Spyglass
252
8540 Homeplace Dr.
Baymeadows
Tribridge Residential
Bluwater Row
170
711 Beach Blvd.
Beaches
Hallmark Partners
220 Riverside
294
220 Riverside Dr.
Central
Pollack Shores
Brooklyn Riverside
310
100 Magnolia St.
Central
Inland Diversified Real Estate
Deerwood Lake Lofts
130
4360 Deerwood Lake Pkwy.
South
Fairfield Residential
Views at Harbortown
155 (143 Complete)
14030 Atlantic Blvd.
Southeast
JACKSONVILLE
Carolinas
Georgia
Virginia
Tennessee
Kentucky
Alabama
Florida
West Virginia
The People Sell the Deal
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
WHY CHOOSE CAPSTONE?
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.
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 January 2015, Direct Company Contact , OBJ Book of Lists 2013, REIS Report, Costar, Business Journals,
Harris InfoSource, Lexis Nexis, LoopNet, Bureau of Labor Statistics, county tax records, and various multi-family industry contacts. Source images provided by James Willamor (cover, pg.2 bottom, left) via https://
creativecommons.org/licenses/by-sa/2.0/ and Rob Bixby (pg. 2 top) via https://creativecommons.org/licenses/by/2.0/.
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