Why the Jacksonville, FL Multifamily Market is on our 2021 Radar Screen

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Our group is focused on acquiring deals in 2021 in select Southeast US markets. To ensure we are constantly monitoring current market information we utilize several data and media sources. One of the ways we stay up to date with relevant market information is by subscribing to Costar. Costar is a world leader in real estate data and information. Their team tracks 390 markets by car and air and certifies more than $1.5 trillion in transactions every year. They have excellent information for our select markets.

It’s a Competitive Market

Over the past two years, we have been evaluating deals and submitting offers on assets in the Jacksonville market without getting any deals under contract (yet). The Jacksonville market is competitive with a lot of out-of-state buyers trying to purchase solid suburban location multifamily assets that provide attractive returns. I found

an interesting article regarding the Jacksonville multifamily market that Costar published. I wanted to share the information because it helps summarize why it’s a competitive market for multifamily investors. 

Costar Insights

Figure 1

“The Jacksonville multifamily market set a record for sales volume in the fourth quarter, shattering the market’s previous record for quarterly deal volume that was set three years ago. Overall, $922 million worth of multifamily properties traded hands in the fourth quarter of 2020, representing 60% of all sales volume for the year. Strong leasing activity, a resilient economy, and pent-up demand tied to the ongoing pandemic likely helped propel end-of-year sales to new heights. 

Almost 90% of the buyer volume in the fourth quarter was from firms based outside of Florida. Out-of-state

investors typically drive sales volume in Jacksonville and have contributed greatly to transaction volume in recent years. The region’s mix of newly built, upscale and luxury apartments and suburban, mid-tier complexes primed for value-add plays attract investors from the West Coast, the Northeast, and other Sun Belt markets.” Figure 1 shows the historical sales volume. 

Note: “Several high-value deals took place last quarter that helped boost the transaction figure. Chicago-based Laramar Group bought Creekfront at Deerwood in October for $96.8 million, 616-unit property (or $157,000 per unit). In November, Blackstone purchased the Citigate Apartments, built in 2009 in southside Jacksonville. 444-unit property for $90 million, or around $203,000 per home.”