Quad Property Group of New York City paid $16.2 million for Peppertree Lane Apartments in Arlington.
The 168-unit apartment property at 2800 University Blvd. S. sold for a $96,428 a unit.
Quad Property Group said it will rebrand the property as The Palms at 2800.
Quad Property Group is a real estate investment firm that specializes in the ownership, redevelopment and management of multifamily properties.
The sale closed Dec. 20 and the deed was recorded Dec. 26. Berkeley Point Capital LLC and Newmark Knight Frank made an almost $11.2 million mortgage to Quad Property Group.
Quad Property group said in a Dec. 23 news release that Newmark Knight Frank Director John Rutherford assisted both parties in the transaction.
It is Quad Property Group’s fourth Jacksonville acquisition.
Quad Property Group posts on its website that it focuses on the acquisition and management of value-add, garden-style multifamily properties in the Southeast.
It says its purchases typically are Class B and C assets built from the 1960s to the 1990s “that are in well-located strategic growth markets.”
It says its goal is to provide investors with superior risk-adjusted returns through its “hands-on, proactive approach to real estate challenges.”
The Peppertree Lane website says a million-dollar renovation is underway.
Property records show Peppertree Lane was built in 1971 on 8.6 acres.
Quad Property Group bought the property through QPG University Apartments LLC.
CMF Peppertree LLC, part of Carter Multifamily of Tampa, sold the property. It paid $12 million for the apartments in April 2018.
The Palms at 2800 is next to the Hart Expressway.
Quad Property Group said it comprises one-bedroom apartments and two-bedroom townhouses from 650 to 1,300 square feet.
It said the complex features two swimming pools, an outdoor kitchen and an on-site leasing office, among other amenities.
Jariel Bortnick, a principal at Quad Property Group, said in the release the company continues “to see opportunity in older, well-located multifamily properties in vibrant growth markets such as Jacksonville.”
“With its dynamic location between downtown and the Southside, The Palms at 2800 is well-situated to capitalize on Jacksonville’s continued growth,” he said.
He said the company plans significant improvements at the property, including the addition of a fitness center and pet park.
Bortnick said occupancy is about 93%. Asking rents range from about $850-$950 a month for one-bedroom apartments and $1,050 to $1,150 for two-bedroom units.
“We have been big believers in Jacksonville and the First Coast for some time now,” said Michael Kashan, also a principal at Quad Property Group.
Seller Carter Multifamily Fund Management Co. LLC says on its website it focuses on buying multifamily real estate investments “that offer value-add enhancement opportunities.”
In a June 5, 2018, news release, Carter Multifamily announced the acquisition of Peppertree Lane, saying the property comprised 18 buildings and was 98% occupied.
Carter Multifamily said it was focused on acquiring value-add Class B and C multifamily assets throughout the United States. It paid $71,429 a unit.