CRP Acquires a 216 unit, B Class Apartment Building in Jacksonville, FL


Over the past 5 years, Los Angeles-based Creative Realty Partners has acquired more than 3,200 multifamily units in Texas and Florida. Their latest is the acquisition of a 216-unit B Class Property in Jacksonville, Florida that will increase their portfolio to 3,400 units. The company’s value-add strategy has proven highly successful in these markets and they see great potential for value creation in the Jacksonville market. In the wake of this proven strategy, CRP will implement exterior and interior improvements to produce substantial rent growth. Exterior upgrades include landscaping, painting and refreshing of building exteriors. The residential units will also be upgraded to include new appliances, kitchen cabinet refacing, and faux-wood flooring, among other improvements.

In addition, CRP’s value-add strategy also includes:

  • Increasing utility bill-back
  • Implementing a water conservation program
  • Decreasing repairs and maintenance costs
  • Reducing vacancy, bad debt and concessions

CRP focuses on areas with high economic growth, strong employment centers, low vacancies, high rental growth rates and unit-enhancement opportunities. The Jacksonville market has been exhibiting healthy growth as the city recorded a $71.9 billion economy at the end of 2015, a 5.5% growth from the previous year. Estimated household income is about $47,424, higher than the Florida average ($46,036). Jacksonville is an important transportation hub with deep-water ports that rival New York as one of the top two vehicle handling ports in the nation. It is also the hub of seven major highway shipping corridors with direct connection to other major cities in the US. Jacksonville remains an attractive city for expanding companies due to its abundance of workers due to in-migration, natural growth, reasonable cost of living, and a business-friendly environment.

The unemployment rate in Jacksonville has been continuously declining in recent years. As of May 2016, the unemployment rate of the city was 4.1%. Jacksonville’s unemployment rate is also below the state average of 4.7%. Rental rates have been exhibiting strong growth in the Jacksonville multifamily market. In 2016, the effective rental growth rate is expected to outpace inflation at 4.6 percent to $917 per month. This also posts higher than the U.S. year over year change of 3.4%.

Founded in 1994, CRP is a privately-held real estate investment and syndication firm that employs a value-add investment strategy. Creative Realty Partners offers a full-service national real estate investment platform, with a successful and consistent performance history and attractive returns on investments. With offices in Orange County and Los Angeles, the real estate team at Creative is has over 60 years of combined multifamily investing experience. During the past five years, CRP has acquired in excess of 3,200 multifamily units and currently holds about 1,400 units in its portfolio. Investments typically range between 100 and 400 units.