New York City-based KKR enters the Florida residential real estate market with the Oct. 27 purchase.
Beach House Apartments in Jacksonville Beach sold for $67.3 million on Oct. 26, reflecting a unit price of $295,175.
BR Beach House DST sold the 228-unit property, completed in 2010, to investment firm KKR and multifamily management company RPM Living Investments.
The property, at 1300 Shetter Ave., is near the Jacksonville Beach Police Station and city athletic complex.
The deed and mortgage were recorded Nov. 2 with the Duval County Clerk of Courts.
New York City-based Bluerock Real Estate sold the property through BR Beach House DST. KKR bought it through KRE B House Owner LLC.
Walker & Dunlop LLC was the lender of the $48.16 million mortgage, records show.
Brian Moulder, managing director of investment sales with Walker & Dunlop, brokered the transaction.
New York City-based KKR announced Oct. 28 the purchase is its first multifamily investment through KREST Real Estate Select Trust Inc., a closed-end fund that invests in commercial real estate equity and debt.
In 2007, Broadstone Jax Beach LLC bought the 11.24-acre property from Golfair Inc. for $6.1 million. Broadstone sold the apartments to BR Beach House DST in April 2016 for about $46.5 million.
The Beach House rents one-, two- and three-bedroom apartment homes. Availability is limited, with just three vacancies listed at the time of the sale.
Monthly rents range from $1,542 for a 939-square-foot one-bedroom apartment to $2,045 for a 1,527-square-foot three-bedroom unit.
Amenities include a pool with cabanas, Wi-Fi common areas, a business center, an outdoor fireplace with seating, a training center, business center and garage rentals.
The purchase represents the first residential investment for KKR Real Estate Select Trust Inc., a commercial real estate division of KKR.
“We are continuing to deepen our footprint in the fast-growing Sunbelt region and believe this beach adjacent property offers attractive value to a wide range of residents who are choosing Jacksonville for its great lifestyle and employment opportunities, said Michael Friedland, KKR managing director, in the Oct. 28 news release.
KKR is a worldwide company. As of June 2021, it managed assets valued at $429 billion.
KREST was launched in 2011 and since then KKR has grown real estate holdings under its management to nearly $33 billion in the United States, Europe and Asia.
RPM Living Investments will manage the property and oversee upgrades. The Austin. Texas-based company is ranked No. 11 on the National Multifamily Housing Council Top 50 Largest Apartment Manager List. It manages properties in Florida and Georgia as well as 14 other states.
“The Beach House’s great location coupled with Jacksonville’s current competitive market attracted us to this investment and we are looking forward to further expanding our presence in the Southeast and Sun Belt region,” said Josh Kahn, COO of investments at RPM Living Investments, in the release.
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