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Southern Pines Apartments Sell for $13M

JACKSONVILLE, FL-The deal is the largest locally this year, possibly signaling a market turnaround.

By Carl Cronan | Updated on June 23, 2009

JACKSONVILLE, FL-The $13-million sale of a 200-unit apartment complex could spell a turnaround for the local multifamily market. Southern Pines Apartments was recently purchased by Nashville-based Covenant Capital Group from Dallas-based BH Management Services LLC.

Until now, only lower-grade apartment properties had been trading hands in Jacksonville, according to Hector Rivera, market analyst with locally based Walchle Lear Multifamily Advisors, which represented the seller in the Southern Pines transaction. He notes that the $65,000-per-unit price is well below replacement value for the 20-year-old, class B rental complex, which attempted a condominium conversion in recent years, yet is also far above the local average of $26,000 so far this year.

“The multifamily market is probably the one commercial sector that has not seen as much of a slump,” Rivera tells GlobeSt.com. “This deal is important because it represents the type of value that buyers and lenders are looking for.”

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