Jacksonville, Fla. – Berkadia has arranged acquisition financing for Portiva, a newly constructed, Class A apartment community with 260 units located in Jacksonville, Florida. Senior Managing Director Mitch Sinberg, Associate Director Matt Robbins and Senior Analyst Wesley Moczul of Berkadia’s South Florida office secured the $36.23 million loan on behalf of the buyer, Myers Apartment Group, which purchased the property prior to stabilization for $50.7 million.
Berkadia originated the mortgage using Fannie Mae’s “Near Stabilization Execution,” which provides financing for newly constructed or recently renovated multifamily apartment communities in lease-up that are expected to achieve stabilized occupancy within 120 days of closing. The 12-year, fixed-rate loan has a competitive interest rate along with a significant interest only component.
“Portiva received its final certificate of occupancy in March of this year and has demonstrated great leasing velocity, attesting to the strong demand for well-located, high-quality product in this market,” explained Sinberg. “The buyer was able to acquire the property at a below-market price, and we helped them achieve the goal of closing before full stabilization, with little risk, by using Fannie Mae’s ‘Near Stabilization’ program. We anticipate the property will be at full stabilization in the next 30 to 60 days.”
According to Berkadia’s Q2 2018 Jacksonville Multifamily Report, apartment occupancy in Jacksonville is 94.5 percent – above the five-year average of 94.2 percent – and average asking rent has advanced 3.9 percent to $1,030 per month. Renters were drawn to new supply during the last year, with 1,899 newly leased units in the last four quarters. Absorption was highest in the submarkets of Southside/Bay Meadows and Southeast Jacksonville. Underpinning healthy rental demand was brisk job growth and the median existing single-family home price reaching a historic high of $254,800, up 13.5% year over year.
Located at 6898 Skinner Parkway, Portiva is a mid-rise apartment community built in 2018 that is conveniently located close to I-95 and the Jacksonville beaches. Major shopping and dining destinations, including St. Johns Town Center, are located only 10 minutes away. The pet-friendly community offers one-, two- and three-bedroom homes with wood-style flooring, French Door refrigerators, premium stainless steel appliances, granite countertops, and a washer and dryer in each unit. Amenities include a salt water pool, pet park and spa, bocce ball court, yoga/cross-training center, five outdoor fire pits and a fireplace, bike storage and repair station, and car wash station.