Group pays $53.66 million for the San Marco Promenade apartments

The 284-unit community is set for 3Q completion in an opportunity zone along Philips Highway.

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Chance Partners LLC and EJF Capital LLC paid $53.66 million for the San Marco Promenade apartments at 1905 Promenade Way, west of Philips Highway between Mitchell Avenue and River Oaks Road at the edge of San Marco.

Jacksonville-based Chance Partners and Washington, D.C. area-based EJF Capital, through Promenade Jax Owner LLC, bought the 284-unit community April 24 through Promenade Jax Owner LLC.

They bought the property from CRP/Chance SMP Owner LLC, a joint venture majority owned by The Carlyle Group based in Washington, D.C.

Jeffrey Rosen and Judd Bobilin lead Chance Partners. Rosen also is part of the group selling the property. 

Rosen signed the deed as vice president of Chance Partners Management LLC, which is part of CRP/Chance SMP Owner LLC.

EJF Capital LLC is a global asset management firm with about $7.4 billion under management.

The Carlyle Group is a global private equity, financial services and asset management corporation with more than $224 billion of assets under management and more than 2,600 investors from 94 countries.  

Promenade Jax Owner LLC assumed a $28.9 million mortgage secured through Synovus Bank.

The acquisition, announced in a news release April 28, said construction is anticipated for completion in the third quarter.

The apartments are a mix of one-, two- and three-bedroom units built among three residential buildings starting in size from 607 square feet for a one-bedroom unit; 1,150 square feet for a two-bedroom unit; and 1,484 square feet for a three-bedroom unit.

There will be about 187 one-bedroom units; 76 two-bedrooms units; and 20 three-bedroom units.

Rental rates start at $1,305 for one-bedroom units; $1,750 for two-bedrooms units; and $2,300 for three-bedroom units. 

Amenities will include a pool, fire pit, digital lounge, 24/7 health club, social lounge, co-working space with meeting room, 24/7 package access, dog park and spa, fitness park and bike and scooter share. Rosen did not respond to calls or an email for comment.

It is a gated community with controlled access.

San Marco Promenade previously was known as Jackson Square. The site had been a car dealership.

Dallas-based Humphreys & Partners Architects LP is the architect and Jacksonville-based Live Oak Contracting LLC is the general contractor.

Chance Partners plans to build 10,000 square feet of retail space in front of the Promenade, along Philips Highway, for a single tenant or multiple users.

Chance Partners owns also, through Chance Philips Owners LLC, the adjacent 7.42 acres south of the Promenade, at 2600 Philips Highway, where it plans to build a second phase of the Promenade.

North of San Marco Promenade, Rosen and Bobilin, through Chance Olevia LLC, and partner EJF Capital began building the 486-unit San Marco Crossing apartments in September.

San Marco Promenade and San Marco Crossing are in an Opportunity Zone, which offers tax benefits under the Tax Cuts and Jobs Act of 2017. The zones are set up to encourage economic growth in low-income areas.

EJF Capital formed the EJF OpZone Fund I LP to capitalize on the advantages of the act.

“We look forward to seeing the evolution of this historic neighborhood,” Bobilin said in the news release.

The sale represents a purchase price of almost $189,000 per unit. It is the third-highest per-unit sale in the last two years, topped by Sentosa Beachwalk, renamed The Elysian, at more than $228,000 per unit and the Ravella at Town Center selling for more than $221,000 per unit.