552 units totaling $39 million located in Jacksonville, FL
JERICHO, N.Y., May 22, 2019 /PRNewswire/ — Toro Real Estate Partners is proud to announce its third, fourth and fifth acquisitions in Jacksonville, FL; Whispering Oaks, Highlander Apartments, and River City Landing. Two of the three properties were acquired off-market and the third was sourced through Dhaval Patel at Walker & Dunlop. This addition of the 552 units increases our units in the Jacksonville Market to 756 and total units acquired nationwide to more than 3,100.
John Cohen, one of Toro’s Co-Founders, had this to say, "Jacksonville is an exciting market that we are looking to continue to grow in and acquire a sizeable portfolio to hold for the next 3-7 years. With its excellent population growth, low unemployment and positive ratio for supply and demand, we see Jacksonville as a market we want to be in for the foreseeable future in the multifamily space."
Toro secured the properties for just under $39 million and is implementing a value-add strategy for roughly $4,000,000. This is a combination of exterior/amenity enhancements, rebranding and interior improvements.
"These deals were very attractive for us because they provide great economies of scale, with a business plan we have executed on in the past," said Don DiRenzo, Toro’s other Co-Founder. "Our underwriting was conservative. The business plan improves the property, but still leaves a ton of meat on the bones for exit in 3 to 5 years or refinance for a longer hold."
"We were fortunate that our Jacksonville Manager Lofty Asset Management, was already managing two of the properties, as well as a direct competitor of the third. Their intimate knowledge of the market and insight into the actual operations of the property provide a tremendous bonus to underwriting and our business plan."
Toro used Ben Weddington at CBRE for two Freddie Small Balance loans for Whispering Oaks and Highlander, while Jeremy Nussbaum at Walker & Dunlop secured the loan for River City Landing. Toro plans to use Lisa Massis at Lofty Asset Management to manage all three assets along with their other two properties. Toro was able to raise roughly $17 million in equity for these deals, roughly one third coming from Toro’s principals.
These properties represent Toro’s 15th, 16th, and 17th purchase since 2015. Toro Real Estate Partners is a private real estate investment firm focused on buying apartment communities throughout the Southeast and Midwest.
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