JACKSONVILLE, FL-Carter, an Atlanta-based commercial real estate investor, has formed a joint venture to acquire the loan on Valencia at the Beach, a condo development at Ponte Vedra Beach. The Carter Real Estate Fund II acquisition marks the firm’s entry into the distressed condominium market.
The joint venture’s acquisition includes 42 units in shell condition, as well as land for additional condos. Macon, Ga.-based Sierra Development, the original developer, built and sold 162 condos. When completed, Valencia will have 245 condominiums in five buildings, including 41 that Carter would develop in the fifth building.
“When the condo market crashed in Florida, people walked out on their contracts at Valencia at the Beach,” John Akin, senior vice president of Carter, tells GlobeSt.com. “By the time they tried to resell those units, the demand wasn’t there at the price point they needed. This is a high-quality condo in a great location, but it got caught in the storm.”
Valencia at the Beach is located the affluent South Jacksonville area, within walking distance to popular shopping and dining destinations. The property is easily accessible from A1A and J. Turner Butler Boulevard and Ponte Vedra Beach’s championship golf and five-star restaurants.
Valencia at the Beach is one of only a handful of distressed condo properties in the Jacksonville market. Another is the Cove at St. Johns, a luxury condominium with 76 residences along the north shoreline of Goodby’s Lake. CB Richard Ellis is selling the partially completed project on behalf of the FDIC.
“I’m sure Carter bought the note at a price that was discounted appropriately, and construction costs are down,” Dhaval Patel, a financial analyst at CB Richard Ellis in Jacksonville, tells GlobeSt.com. “The cost to compete in today’s environment is a lot better than what it was a couple of years ago. The condos just need to be priced appropriately for the end users.”
Condominiums at the Valencia, mostly two- and three-bedroom units, will be priced from the high $100,000s to more than $300,000. Carter has hired Manhattan-based Marketing Directors, Inc., a marketer and exclusive sales agent of residential properties for 30 years, to create and implement a new plan to market the condos. Keller Williams will provide local sales support and operate the on-site sales center.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
