A 400-unit apartment complex off the Arlington Expressway in Jacksonville changed ownership for $31.3 million from one private real estate firm to another.
AREP Pier LLC, a subsidiary of New York City-based Atlas Real Estate Partners, acquired the property Aug. 27 from Summer Oaks LP, a subsidiary of Chicago-based 29th Street Capital.
Atlas acquired the property by financing the deal with a 12-year fixed-rate Freddie Mac loan for $24.1 million.
The community, called Pier 5350 but formerly titled Summer Oaks, is near the Arlington Expressway and University Boulevard North in the Clifton area, with a view of the St. Johns River.
Joe Stampone, vice president of investments for Atlas Real Estate Partners, said the firm plans to renovate parts of the complex, including outdoor spaces and interior residents’ units.
“We intend to execute a value-add program aimed at correcting deferred maintenance issues, dressing up the exterior to increase curb appeal, adding a new modern amenity package and renovating the unit interiors,” he said.
Stampone wouldn’t disclose how much money will be invested to upgrade the complex, built in 1972, but said it will be in the “multimillion-dollar” range.
He said rental rates could increase but didn’t provide specifics. According to apartments.com, the units rent for a low of $665 for a studio apartment up to $1059 for a three-bedroom apartment.
“Post-renovation, we believe Pier 5350 will be well positioned competitively and offer an attractive value proposition for prospective residents looking for a high-quality community, located minutes from Downtown, with affordable rents,” Stampone said.
This purchase was the New York firm’s first acquisition in Jacksonville, Stampone said, but that the region is a “target market” where it wants to invest.
Stampone said Atlas owns about 6,000 apartment units nationally and has about $750 million in assets.