JACKSONVILLE, FL - Los Angeles-based Element Property Company has acquired Kernan Oaks apartments in the Southside submarket of Jacksonville, Florida, with plans to convert the community from a 70/30 mix of traditional apartments and student housing/co-living into 100% conventional market-rate apartments. Element has implemented a similar conversion strategy at two other properties.
The 361-unit garden apartment community was built in 1997. It’s highly amenitized with two resort-style pools, sand volleyball, basketball and tennis courts, 24-hour fitness center, 16,800 sq. ft. clubhouse, business center, concierge package lockers, dog park, and grilling and social entertainment areas.
As the need for student housing in the nearby community has declined, the market for apartments has been robust. Prospective tenants include young families and professionals seeking affordable homes in a great community with highly rated schools.
“Kernan Oaks is our first acquisition in the Southeast, representing a compelling opportunity to fully convert the property to conventional multifamily residential,” said Michael Silberman, Co-founder and Partner of Element Property Company. “The three and four-bedroom floorplans should be especially appealing to families and can be offered at competitive, attractive pricing given the scale of a project like this.”
Jacksonville’s Southside is the premier submarket of the MSA. The Southside has become Jacksonville’s true Central Business District. Throughout the current cycle, the Southside has been ground zero for phenomenal job and population growth in the MSA.
The submarket is centered around the intersection of I-295 and J. Turner Butler Boulevard (SR 202), and boasts the region’s premier office market, entertainment districts and direct regional access to beaches, major medical hubs (Mayo Clinic and Downtown Medical District), Flagler Center, JAXPORT and the Jacksonville airport.
Element has capitalized the acquisition and improvements with equity including crowd-sourced capital raised on CrowdStreet, the largest online private equity real estate investing platform, and a mortgage loan.
According to Silberman, “This was our first offering on CrowdStreet. We were pleased to see investors’ appetite for the project, which was fully subscribed within minutes. We will likely be back with another project that meets CrowdStreet’s investment criteria.”
"We are pleased to welcome Element to the CrowdStreet platform. Element’s track record of executing value-add business plans in the multifamily sector is stellar, including proven experience in conversions from student housing to conventional residential,” said Landon Wright, Managing Director of CrowdStreet. “Their plan for Kernan Oaks resonated well with our investors, who generally view multifamily as an attractive asset class. We look forward to working with Element again."