Jeff Klotz • 904-514-1090 • [email protected] Lou ...justmultifamily.com/CedarSpringsVillage/CSVPKG_0912.pdf · Building Size 6 buildings, 48,866 SF, 1, 2 and 3 story

Jeff Klotz • 904-514-1090 • [email protected] Bills • 904-625-3487 • [email protected]


ADDRESS: 645 Mayport Road, Suite 5, Atlantic Beach, Florida 32233 TEL: 904/247.5334 FAX: 904/853.6926Disclaimer: The information contained in this package does not originate from Just Multifamily Apartment Asset Advisors, LLC. The information is provided by the seller, independent and third party sources. We do not guarantee or indemnify any information in this package. We provide this information as a broker on behalf of the seller and related parties. Projections, opinions, and estimates are not facts and should not be taken as such. All information should be verified on your own before making any conclusions or actions.

5710 San Juan Avenue • Jacksonville, FL 32210

Helpful Due DilegenceExecutive SummaryInvestment Analysis

Unit MixProperty Valuation Forcast

Operating Expenses ForecastOperating Statement Forecast

Property Valuation CurrentOperating Expenses Current

Stabilized CAP Rate AnalysisRent Comps

PhotosAerial

Proximity MapJacksonville Highlights

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JustMultifamily

Apartment Asset Advisors, LLC

OFFERED BY:

645 Mayport Road, Suite 5Atlantic Beach, Florida 32233Phone • 904-247-5334 ext. 312Fax • 904-853-6926

Jeff Klotz • 904-514-1090

Lou Bills • 904-625-3487

Table Of ContentsCedar Springs Village

CEDAR SPRINGS VILLAGE

Disclaimer: The information contained in this package does not originate from Just Multifamily Apartment Asset Advisors, LLC. The information is provided by the seller, independent and third party sources. We do not guarantee or indemnify any information in this package. We provide this information as a broker on behalf of the seller and related parties. Projections, opinions, and estimates are not facts and should not be taken as such. All information should be verified on your own before making any conclusions or actions.

PROPERTY:

_____________________________________

JustMultifamily Apartment Asset Advisors, LLC (JMAAA) has available for review certain information concerning the Property which includes brochures and other materials (collectively “Informational Materials”). JMAAA will not disclose or allow the use of such Informational Materials unless and until the Potential Purchaser has executed this agreement. The use of any materials provided by JMAAA is subject to the following conditions

If in agreement with the foregoing, please return one signed copy of this agreement to JustMultifamily Apartment Asset Advisors, LLC. Attention: Lou Bills, Fax (904) 853-6926

All Informational Materials pertaining to the Property, which may be furnished by JMAAA, shall continue to be the property of the Owner and JMAAA. The Informational Materials will be used solely for the purpose of the Potential Purchaser and may not be copied or duplicated without JMAAA written consent and must be returned to JMAAA immediately upon JMAAA’s request or when the Potential Purchaser terminates negotiations with respect to the Property.

The Informational Materials may be disclosed to the Potential Purchaser’s partners, employees, legal counsel and institutional lenders (“Related Parties”), for the purpose of evaluating the potential purchase of the Property.

The Potential Purchaser understands and acknowledges that JMAAA and the Owner do not make any representations or warranty as to the accuracy or completeness of the Materials and that the information used in the preparation of the Informational Materials was furnished to JMAAA by others and has not been independently verified by JMAAA and is not guaranteed as to completeness or accuracy.

The Potential Purchaser hereby indemnifies and holds harmless JMAAA and their respective affiliates and successors and assigns against and from any loss, liability or expense, including attorney’s fees, arising out of any breach of any of the terms of this Agreement including, without limitation, claims for brokerage commissions from any agent representing Potential Purchaser. The undersigned below does hereby covenant that I/we shall not commence or maintain any suit thereon against JMAAA whether at law or in equity at any time.

The Potential Purchaser understands and acknowledges that should negotiations lead to closed transaction that JMAAA shall be recognized as the procuring cause. It is also understood that our fees are typically paid by the seller, however during contract negotiations, our fees may be reduced. It is agreed that JMAAA shall be paid a minimum of 2% of the purchase price at the time of closing.

The Potential Purchaser agrees not to circumvent JMAAA, its agents, and/or the owner while pursuing this opportunity. The Potential Purchaser agrees not to contact the owner or any of its representatives and/or the lender or any of their representatives. The Potential Purchaser agrees not to pursue negotiations through anyone else other than JMAAA. This agreement terminates two (2) years from the date.

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Potential Purchaser I am a Broker: I also need to sign the Participating Broker Agreement

I am a Broker acting as a principal

Accepted And Agreed To:

This ____Day of _____2012

_______________________(Signature)

Name: __________________________

Title: __________________________

Company: ________________________________________

Address: _________________________________________

Phone No. : ________________________________________

Fax No. : __________________________________________

Email: ____________________________________________

Principal Confidentiality/Registration AgreementCedar Springs Village

(requires above form)

JustMultifamily Apartment Asset Advisors, LLC has available for review certain information (“Confidential Information”) concerning the Property or properties identified above. JustMultifamily Apartment Asset Advisors, LLC may make such Confidential Information available to the undersigned broker acting as an agent for the “Principal” listed above upon execution of this Confidentiality/Registration Agreement. By signing below the undersigned broker acknowledges and agrees to all of the terms and conditions included in the above Principal Confidentiality/Registration Agreement as well as the following terms and conditions:

If the above meets your approval and is acceptable, please sign and return by fax to (904) 853-6926.

COOPERATING BROKER AGREEMENTACKNOWLEDGED AND AGREED:

Brokerage Company: ______________________________________________________________________________________

Address: ________________________________________________________________________________________________

Phone: __________________________________________________________________________________________________

Email Address: ___________________________________________________________________________________________

By: _____________________________________________________________________________________________________ Signature or Broker of Record

Date: ____________________________________________________________________________________________________

This form must be completed in its entirety and submitted with the above agreement for your Principal.

Non-disclosure of Information. The information will be kept confidential by you, will not be used for any purpose other than in connection with the Evaluation, and you will neither disclose nor allow the disclosure of the Information to anyone other than such of the partners, directors, officers, lenders, employees, agents, counsel, consultants, or representatives of the Potential Purchaser listed in the above agreement (collectively, “Your Clients Representatives”) as are appropriate in order to conduct the Evaluation, or to other persons who have executed confidentiality agreements with Provider or Owner with respect to the Information. You will (a) inform each of Your Representatives receiving Information of the confidential nature of the Information and (b) direct Your Representatives to treat the Information confidentially and not to use it other than in connection with the Evaluation. Any disclosure by Your Representatives which, if made by you, would be a breach of this Agreement, shall also be a breach by you of this Agreement.

Non-Solicitation of Third Parties. Without limiting the generality of the foregoing provisions of this Agreement, you agree that you will not circulate, and will not be permitted to be circulated, the terms of, nor the existence of, any Information other than to Your Client as listed in the agreement above.

The Potential Purchaser and their broker understands and acknowledges that should negotiations lead to closed transaction that JMAAA shall be recognized as the procuring cause. It is also understood that our fees are typically paid by the seller, however during contract negotiations, our fees may be reduced. It is agreed that JMAAA shall be paid a minimum of 2% of the purchase price at the time of closing. JustMultifamily Apartment Asset Advisors, LLC shall cooperate in the sale of subject property by splitting any fee earned 50/50 with registered broker below.

The registered broker below agrees not to circumvent JMAAA, its agents, and/or the owner while pursuing this opportunity. The Potential Purchaser & broker agree not to contact the owner or any of its representatives and/or the lender or any of their representatives. The Potential Purchaser and their broker agree not to pursue negotiations through anyone else other than JMAAA. This agreement terminates two (2) years from the date executed.

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Principal Confidentiality/Registration AgreementCedar Springs Village



Available Cedar Springs VillageParcel ID # 11087-1583Brief Legal 4-02 31-2S-26E 2.45 CEDAR SPRINGS S/DAddress 5710 San Juan Ave. Jacksonville, Florida, 32210 or 2039 Niblick Drive Jacksonville,

Florida 32210Year Built 1965Construction Concrete Block, Masonry FrameGeneral Roof - trussed roof with asphalt shingles, Floors – exposed concrete finished in carpet

and vinyl. AC – Central heating and AC.Public Utilities Duval County (JEA), Electricty, Water & SewerLand Size 2.5 AcresBuilding Size 6 buildings, 48,866 SF, 1, 2 and 3 story and a concrete utility laundry building, 34,029 SF

asphalt parking lot, in ground poolZoning RMD-E (Residential Medium Density)Number of Units 56

Unit Mix 20 - 1 bedroom 1 bath 744 SF26 - 2 bedroom 1 bath 936 SF9 - 2 bedroom 2 bath 950 SF1 – 3 bedroom 2 bath 1,100 SF

Gross Potential Income $417,900

Stabilized Net Operating Income - NOI

$188,800

Stabilized Market Value $2,097,777 @ 9% CAP ($37K per unit)

Stabilized CAP Rate 10% at $1,888,000 purchase price

Purchase Price $1,848,000 ($33K per unit)

Flood Zone “X” - a non-hazard area

Opportunity Due to its proximity to the Marina & Cedar River, Cedar Springs Village offers the investor an opportunity to own a quality concrete construction complex in a convenient area of westside Jacksonville that will become more influential in just a few short years. Consequently, high occupancy and annual rental increases should become commonplace for years to come.

Comments No environmental problems, wetlands or other factors appear to existSales Contact Jeff Klotz, 904-514-1090, [email protected]

Lou Bills, 904-625-3487, [email protected]

Executive SummaryCedar Springs Village

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Investment Highlights• Complex surrounded by parcels w/ tremendous

development potential that will ultimately increase value of property.

• Solid Construction - Concrete block with concrete 2nd floor slab and concrete roof deck

• Manageable size for repositioning – 2.5 Acres, 56 units. 64% occupancy can easily be increased w/ proper mgt.

• Great Location and Amenities – near shopping and employment, convenient to downtown and expressways, public transportation, near parks, golf, schools and waterways; has laundry and recreation areas.

This is a strong investment opportunity due to the “buy right” scenario giving this property an excellent upside potential with modest rehabilitation and repositioning.

Additional strengths include its close proximity to new growth, development and proximity to the Cedar River and potential for the Watermark Marina which is positioning for a future water park and marina development. . Nearby new development includes a new 40 unit condo project, a retail strip center across the street, the soon to be renovated Hyde Park Golf Course, and an existing waterfront condo project across the street.

Cedar Springs Village provides an excellent C-Class construction opportunity in a B-Class area. The property has terrific curb appeal, between the busy thoroughfare of Jammes Road and Cedar Creek on the south side of San Juan Avenue.

The property is centrally located in the scenic established Lakeshore neighborhood, near major roadways, San Juan Ave, Blanding Blvd. and Roosevelt Blvd (US 17). The great location allows for easy access to Jacksonville’s Naval Air Station (NAS), downtown, Orange Park and interstate highways (I-10, I-95 and I-295). Thus the neighborhood is bounded by right of way of interstate 10 to the

North, the St. Johns River to the east, by interstate 295 to the West and South. The property is nestled in a quiet residential community yet convenient to shopping including several newly renovated and brand new centers with a variety of stores and restaurants providing easy shopping, employment opportunities and public transportation.

The area hosts a variety of land uses, mainly single and multi family residences, office/commercial and light industrial. Most of the commercial is on Lane Avenue, San Juan Avenue, Wilson Blvd., Blanding Blvd., 103rd Street and Jammes Road. The area is attractive and enjoys public acceptance due to it’s affordability, convenience and character.

Adjoining neighborhoods within a couple mile radius of the Cedar Springs Village include single-family residences valued from $200,000 into the multi million dollar range on the St. Johns River and nearby retail and restaurants includes new national class A tenants.

The property includes 6 buildings of 56 units, average size 820 square feet, and a concrete utility building, on 2.5 acres including ample parking on 34,000 square feet. The buildings are concrete block and masonry construction and the grounds include a pool, laundry facility and office.

The Lakeshore, Hyde Park & San Juan areas are experiencing significant improvements with new retail, waterfront condominiums within a mile of the property, and development plans unfolding for new marinas and water parks. The property is within a mile of scenic tributaries with boat slips and boat ramps that lead to the St John’s River and the Atlantic Ocean.

Jacksonville’s growth and stable economy helps make Cedar Springs Village an excellent investment opportunity. Basic marketing and management will result in a quick turnaround situation providing increased occupancy and cash flow.

In order to take advantage of this great opportunity to purchase this property at a great price, seller is looking for a buyer with the ability to perform their due diligence and close quickly.

Investment AnalysisCedar Springs Village

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Unit MixCedar Springs Village

Stabilized/MarketBD/BA # Units SF Total SF Rent Rent PSF Monthly Rent Annual Rent1bed /1 bath 20 744 14,880 $550.00 $0.73 $11,000.00 $132,000.002 bed / 1 bath 26 936 24,336 $650.00 $0.69 $16,900.00 $202,800.002 bed / 2 bath 9 950 8,550 $675.00 $0.71 $6,075.00 $72,900.003 bed 2 bath 1 1,100 1,100 $850.00 $0.79 $850.00 $10,200.00Total 56 48,866 $34,825 $417,900Avg 873 $621.88 $0.71* 6 buildings with a concrete utility garage and a paved parking lot (34,029 SF)

CurrentBD/BA # Units SF Total SF Rent Rent PSF Monthly Rent Annual Rent1bed /1 bath 20 744 14,880 $525.00 $0.71 $10,500.00 $126,000.002 bed / 1 bath 26 936 24,336 $625.00 $0.67 $16,250.00 $195,000.002 bed / 2 bath 9 950 8,550 $650.00 $0.69 $5,850.00 $70,200.003 bed 2 bath 1 1,100 1,100 $825.00 $0.78 $825.00 $9,900.00Total 56 48,866 $33,425.000 $401,100.00Avg 873 $596.88 $0.68

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Property Valuation ForecastCedar Springs Village

9/18/12

Analysis deemed reliable but not guaranteed. Estimates differ according to specific investor criteria and assumptions.

Property Valuation Forecast

Project Name: Cedar Springs Village Apts - StabilizedProject Type: Multifamily - Garden Style ApartmentsProject Description: CurrentLand Area: 2.5 AcresPrepared for: Prospective BuyerPrepared by: Lou Bills, Broker Associate

Anticipated Holding Period: 4Square Monthly Annual

Potential Gross Rent Inputs: Units Footage Rent RentType 1: 1Bd/1Bth 20 744 $550 $132,000Type 2: 2Bd/1Bth 26 936 $650 $202,800Type 3: 2Bd/2Bth 9 950 $675 $72,900Type 4: 3Bd/2Bth 1 1100 $850 $10,200Type 5: 2Bd/2Bth 0 0 $0 $0

Square Feet Annual Rent / SFResidential Input: 48866 8.55 Annual gross rent estimate:

0* 1 2 3 4 5 6 7 8 9 Increase in Rents: 0.0% 0.0% 3.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%(to the following year) * This box is filled in only if monthly rents above are current and need to be adjusted for the first year of operations (below market).

1 2 3 4 5 6 7 8 9 10 Estimated Vacancy Rates: (for each year) 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

Other Income: 3.0% (percentage of collectable rents)

Potential Gross Rent Estimate for first year:

Asking Price:

$417,900

$417,900

$1,848,000

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9/18/12


Operating Expenses Forecast


Annual Operating Expense Increase: 1.0% Management Fee (% of EGI): 4.0%

0* 1 2 3 4 5 6 7 8 9 Increase in Property Taxes: 0.0% 5.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

(to the following and continuing years) * this box is filled in only if property taxes below need to be adjusted for the first year of operations (See footnote below *)

First-Year Operating Forecast

Potential Gross Rent Less: Allowance for Vacancies

Plus: Other Income (Includes Reimbursements)Effective Gross Income

Current Expense Estimates:Operating Expenses

Net Operating Income (NOI)

Note: all numbers are annual and rounded to the nearest $100

16,400 Personnel, Payroll, Taxes, Wks-Comp

30,000

25,3003,5001,000

57,600 Advertising Repairs & Maintenance Property Taxes & Licenses *

57,000$ 30,000$

54,00032,300

417,900$ 20,900

397,000$ 11,900

408,900$

220,100

Management Fee (% of EGI)

Utilities Insurance Administrative

188,800$

53,500$ 32,000$ 25,000$

3,500$ 1,000$

Operating Expenses ForecastCedar Springs Village

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9/18/12


Operating Statement Forecast


Operating Forecast1 2 3 4 5 6 7 8 9 10

1. Potential Gross Rent 417,900 417,900 430,400 451,900 0 0 0 0 0 02. Vacancy Allowance 20,900 20,900 21,500 22,600 0 0 0 0 0 03. 397,000 397,000 408,900 429,300 0 0 0 0 0 04. Other Income 11,900 11,900 12,300 12,900 0 0 0 0 0 05. Effective Gross Income 408,900 408,900 421,200 442,200 0 0 0 0 0 0

6. Operating Expenses7. Management Fee 16,400 16,400 16,800 17,700 0 0 0 0 0 08. Prsnl, Pyrll, Txs, W-C 54,000 54,500 55,000 55,600 0 0 0 0 0 09. Utilities 32,300 32,600 32,900 33,200 0 0 0 0 0 0

10. Insurance 25,300 25,600 25,900 26,200 0 0 0 0 0 011. Administrative 3,500 3,500 3,500 3,500 0 0 0 0 0 012. Advertising 1,000 1,000 1,000 1,000 0 0 0 0 0 013. Repairs & Maintenance 57,600 58,200 58,800 59,400 0 0 0 0 0 014. Property Taxes & Lics. 30,000 31,500 31,800 32,100 0 0 0 0 0 0

15. Total Expenses 220,100 223,300 225,700 228,700 0 0 0 0 0 0

16. Net Operating Income 188,800 185,600 195,500 213,500 0 0 0 0 0 0

17. Cap Rate 10.2% 10.0% 10.6% 11.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Forecasted Operating Expense Ratios1 2 3 4 5 6 7 8 9 10

53.8% 54.6% 53.6% 51.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Operating Statement ForecastCedar Springs Village

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9/18/12


Property Valuation Forecast

Project Name: Cedar Springs Village Apts - CurrentProject Type: Multifamily - Garden Style ApartmentsProject Description: CurrentLand Area: 2.5 AcresPrepared for: Prospective BuyerPrepared by: Lou Bills, Broker Associate

Anticipated Holding Period: 4Square Monthly Annual

Potential Gross Rent Inputs: Units Footage Rent RentType 1: 1Bd/1Bth 20 744 $525 $126,000Type 2: 2Bd/1Bth 26 936 $625 $195,000Type 3: 2Bd/2Bth 9 950 $650 $70,200Type 4: 3Bd/2Bth 1 1100 $825 $9,900Type 5: 2Bd/2Bth 0 0 $0 $0

Square Feet Annual Rent / SFResidential Input: 48866 8.21 Annual gross rent estimate:

0* 1 2 3 4 5 6 7 8 9 Increase in Rents: 0.0% 0.0% 3.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%(to the following year) * This box is filled in only if monthly rents above are current and need to be adjusted for the first year of operations (below market).

1 2 3 4 5 6 7 8 9 10 Estimated Vacancy Rates: (for each year) 36.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

Other Income: 3.0% (percentage of collectable rents)

Potential Gross Rent Estimate for first year:

Asking Price:

$401,100

$401,100

$1,848,000

Property Valuation CurrentCedar Springs Village

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Operating Expenses CurrentCedar Springs Village

9/18/12


Operating Expenses Forecast

Project Name: Cedar Springs Village Apts - CurrentProject Type: Multifamily - Garden Style ApartmentsProject Description: CurrentLand Area: 2.5 AcresPrepared for: Prospective BuyerPrepared by: Lou Bills, Broker Associate

Annual Operating Expense Increase: 1.0% Management Fee (% of EGI): 4.0%

0* 1 2 3 4 5 6 7 8 9 Increase in Property Taxes: 0.0% 5.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

(to the following and continuing years) * this box is filled in only if property taxes below need to be adjusted for the first year of operations (See footnote below *)

First-Year Operating Forecast

Potential Gross Rent Less: Allowance for Vacancies

Plus: Other Income (Includes Reimbursements)Effective Gross Income

Current Expense Estimates:Operating Expenses

Net Operating Income (NOI)

Note: all numbers are annual and rounded to the nearest $100

Management Fee (% of EGI)

Utilities Insurance Administrative

94,800$

40,624$ 30,500$ 24,398$

6,838$ 1,000$

28,442$ 26,046$

41,00030,800

401,100$ 144,400 256,700$

7,700 264,400$

169,600

10,600 Personnel, Payroll, Taxes, Wks-Comp

26,000

24,6006,9001,000

28,700 Advertising Repairs & Maintenance Property Taxes & Licenses *

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Stabilized CAP Rate AnalysisCedar Springs Village

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CAP Rate 9.00% 10.00% 11.00% 12.00%Price $2,097,777 $1,888,000 $1,716,363 $1,573,333Price Per Unit $37K $33K $30K $28KPrice Per Square Foot $43 $38 $35 $32

StabilizedUnits 56Sq. Ft. 48,866EGI $408,900NOI $188,800



COMMENTSCurrent concessions include $199 move-in special.

Unit Type No. of Units SF Rent Rent/SF1 Bdr 1 Bath 15 625 $525 $0.842 Bdr 1 Bath 41 825 $625 $0.76

Total/Wtd. Avg. 56 43,200 $575 $0.80

SUBJECT PROPERTY

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No. of Units 56Occupancy: 90%Year Built: 1978

OAKRIDGE APARTMENTS2535 Jammes RoadJacksonville, FL 32210



VIRGINIA ARMS

2501 Jammes RoadJacksonville, FL 32210

MORNINGSIDE APARTMENTS2401 Jammes RoadJacksonville, FL 32210


Total/Wtd. Avg. 60 50,800 $562 $0.71


Total/Wtd. Avg. 112 89,200 $637 $0.83

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus& Millichap Real Estate Investment Services of Florida © 2008 Marcus & Millichap P0240061

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Rent CompsCedar Springs Village

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CASA GRANDE3455 San Juan AvenueJacksonville, FL 32210

No. of Units 80Occupancy: N/AYear Built: 1974

No. of Units 32Occupancy: N/AYear Built: 1969

ADMIRAL ARMS6595 San Juan AvenueJacksonville, FL 32210

BRITTANY ARMS2125 Hyde Park RoadJacksonville, FL 32210

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COMMENTSConcessions include $499 move-in special. 8 units are Studios

COMMENTSLandlord pays for water & sewer

COMMENTSLandlord pays for water/sewer, pest control, refuse collection.


Total/Wtd. Avg. 80 56,834 $575 $0.78

Unit Type No. of Units SF Rent Rent/SF1 Bdr 1 Bath 27 525 $530 $1.011 Bdr 1 Bath 12 750 $600 $0.802 Bdr 1 Bath 20 650 - 988 $639 - $675 $0.802 Bdr 1.5 Bath 20 1,025 $695 $0.68

Total/ Avg. 79 47,455 $620 $0.82

Unit Type No. of Units SF Rent Rent/SFStudio 1 500 N/A1 Bdr 1 Bath 7 740 $545 $0.742 Bdr 1 Bath 24 940 $605 $0.64

Total/Wtd. Avg. 32 28,240 $575 $0.69


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SAN JUAN VILLAS5821 San Juan AvenueJacksonville, FL 32210

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Unit Type No. of Units SF Rent Rent/SF1 Bdr 1 Bath 20 744 $535 $0.722 Bdr 1 Bath 60 936 $605 $0.652 Bdr 1.5 Bath 16 1,120 $650 $0.58

Total/Wtd. Avg. 96 126,153 $596 $0.65

COMMENTS21 units are 3bd/2ba


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PhotosCedar Springs Village

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San Juan Ave

AerialCedar Springs Village

1. Cedar Springs Village - Subject Property

2. Vacant Outparcel - Currently available for purchase through this broker

3. Marina - Currently available for purchase through this broker

4. Marina - Currently available for purchase through this broker

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1. Proposed mixed-use marina, boat slips, dry storage, condominiums – across San Juan Avenue

2. Hyde Park Golf Club – immediately to the north of the property

3. Florida Community College Jacksonville (Kent Campus) – 5 minutes

4. Riverside/Avondale neighborhoods: fine dining, boutiques, night life – 5 minutes

5. Naval Air Station-Jacksonville (NAS-Jax) – 10 minutes

6. Cecil Field (former naval air station) – 20 minutes

7. Jacksonville International Airport – 15 minutes

8. Downtown Jacksonville – 10 minutes

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9. Roosevelt Mall

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Proximity MapCedar Springs Village

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City of Jacksonville/Duval County • Where Florida Begins

The Jacksonville MSA is one of the 50 largest economies in the US and is well diversified with long-term growth industries including military, transportation, healthcare and financial services.

According to the 2010 Census estimates, the Jacksonville MSA has more than 1.3 million residents and more than 526,000 households. Jacksonville has experienced good population growth during the last decade and is expected to see over 60,000 new residents during the next three years, according to a forecast by University of Central Florida (UCF).

Jacksonville continues to be an expanding business city that fosters a pro-business climate. The area is also one of the nation’s youngest, with an average age of just over 37 years, well below the average for other major Florida cities. The local economy supports approximately 623,918 jobs as of June 2011, and although economic growth slowed during the recession, UCF’s Florida Forecast has the Jacksonville MSA area gaining over 56,000 jobs during the next three years.

In addition, the area’s strategic location with two major interstates, multimodal network, well-educated labor pool, low cost of living and low cost of doing business will ensure continued economic growth over the long term. The foundation has been laid to make Jaxport the second largest port on the east coast. Also, numerous companies have expanded/relocated locally during the past two years including: Medtronic, Keystone, Bank of America, Kaman Aerospace, Lender Processing Services, Deutsche Bank, Xorail, PNC and FDIC.

More than 15% of Jacksonville area residents are connected with the Navy, either through active or reserve duty, as a retiree, civilian employee, or member of a military family. Every year, more than 4,000 highly-trained, mission-oriented personnel exit or retire from military service and 80% of those choose to stay in Jacksonville. From 2011-2014, Jacksonville is projected to see an average annual job growth of 3.6% (approximately 19,000 jobs annually).

The Jacksonville market is comprised of 71,000 apartment units according to the latest WRH market survey. The apartment market bottomed during 4Q 2009 and is now on the upswing. Market occupancy for 2Q 2011 is at approximately 90%, which is 500 basis points higher than during December 2009. Jacksonville apartment communities overall command an average rental rate of $0.85 per square foot, or $795 per month. Meanwhile, 1980’s vintage commands $0.90 per SF ($762 per month), on average. Well managed properties remain in the mid to high 90’s occupancy. Market fundamentals have improved and will continue to do so with future job growth and as rental demand outpaces supply.

There were zero apartment deliveries during 2010 and very few units will be delivered during 2011, which is a positive sign for concession and occupancy levels. The Jacksonville multifamily market will continue to improve as job growth continues.

Jacksonville HighlightsCedar Springs Village

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SUPPLY

• Apartmentdeliveriessloweddramaticallyin2010withonly500newrentalunitscompletedand2011hasbeenevenslower.Therehavebeenfivemultifamilylandsalescompletedinthelasthalfof2011foraprojected1,500units,Constructionisexpectedtostartinearly2012.

• The decline of multifamily permits and the limitedrentalsupplyintheupcomingyearswillleadtofurthertightening of occupancies and stronger propertyperformance. The 2000-2010 yearly average ofmultifamily permit issuance has been 3,245 per yearbutin2010and2011,annualizedpermitissuancehasbeenafractionofthosenumbers.

• Between2003and20077,600rentalunitswereconvertedtocondominiums,representinga15%declinetotheapartmentstock.

OCCUPANCY AND RENTAL RATES

• Jacksonville is proving to be one of the quickestmultifamilymarketsinthecountrytorecoverfromtherecession.Vacancyin2010was8.3%andisforecasttobe7.1%for2011.

• TheOceanBeachessubmarketoftheJacksonvilleMSAhasoneofthelowestvacancyratesatonly2.9%,closelyfollowedbythegrowingSouthsidesubmarketat6.1%.

• Effective rents stabilized in 2010 and are expected toincrease this year,with rentgrowthof3.6%and3.4%projectedfor2011and2012,respectively.

POPULATION AND EMPLOYMENT TRENDS

• As of 2011, the Jacksonville’s overall populationis 1.3million. Since 2000, it has had a populationgrowthover15%.

• ThemedianhomecostinJacksonvilleis$147,100.Home appreciation the last year has been -9.13percent.

• The unemployment rate in Jacksonville is 10.3%(U.S. avg. is9.1%).Recent jobgrowth isNegative.Jacksonvillejobshavedecreasedby0.32%.

INVESTMENT SALES ACTIVITY AND CAP RATES

• Eight Class C multifamily assets have traded in2011 with severalmore under contract or on themarket. Class Amultifamily activity continues tokeep momentum throughout 2011 with eleventransactionsthatalreadysurpasses2010transactionvolume.

• One reason for the upward trend in investmentactivity,especially inthemultifamilymarket, is thecurrentcapitalmarketsenvironment.Interestrateshaveremainedathistoricallylowlevelsthroughout2011andwillremaininplacefor2012.

• Capratesin2011forsomeClassAtransactionhavebeenunder5%withmanyClassB&Ctransactionshaving cap rates from 6 to 12%. Cap rates canfluctuate wildly depending on occupancy anddeferredmaintenance.


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Population DataClassification NumbersTotal Population (2009) 900,518 Projected Population (2015) 946,900Projected Population (2020) 1,007,600 Growth Rate 2009 - 2015 5.10%Growth Rate 2009 - 2020 11.80%

Jacksonville Regional2009 1,537,2942015 1,663,100

2020 1,813,900

Growth Rate 2009 - 2015 8.10%

Growth Rate 2009 - 2020 17.90%

HouseholdsHouseholds 371,435

Per Capita Income 25,223

Average Household Income $59,471

Median Household Income $46,312

Age0-7 24.7%

18-34 24.2%

35-54 28.9%

55-64 11%

65-79 8%

80+ 3.3%

Median Age 35.8

Race and Ethnicity Caucasian 61.4% African-American 30.8% Asian 4.0% Native American 0.3% Hawaiian/Pacific Islander 0% Two or more races 1.2%Other 2.3%

**Hispanic or Latino Origin 6.6%

Housing units, 2010 366,273Homeownership rate, 2005-2009 62.90%Housing units in multi-unit structures, percent, 2005-2009

28.50%

Median value of owner-occupied housing units, 2005-2009

$170,600

Households, 2005-2009 316,946Persons per household, 2005-2009 2.48Per capita money income in past 12 months (2009 dollars) 2005-2009

$25,223

Median household income 2005-2009 $48,514People of all ages in poverty - percent, 2005-2009

13.50%

Source: JEDC, updated June 2011.

Major Employers in JacksonvilleEmployer Sector Number of EmployeesNaval Air Station Jacksonville U.S. Navy 25,200 Naval Station Mayport U.S. Navy 12,600 Baptist Health Hospital 8,200 Bank of America Merrill Lynch Banking 6,000 Citi Credit Card Company - Division Headquarters 5,000 Mayo Clinic Hospital 4,900 United Parcel Service Mail Service 4,100 St. Vincent’s Medical Center Hospital 4,000 U.S. Postal Service Mail Service 3,700 Shands Jacksonville Medical Center Hospital 3,500CSX Railroad Corporate Headquarters 3,300


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Jeff Klotz • 904-514-1090 • [email protected] Lou ...justmultifamily.com/CedarSpringsVillage/CSVPKG_0912.pdf · Building Size 6 buildings, 48,866 SF, 1, 2 and 3 story

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