We’ve invested roughly $13.1 million in the acquisition and renovation of Mezza Apartments (formerly Eastport Apartments), a 440-unit community in Jacksonville, Florida. The property is located roughly ten miles north of downtown near several major employers. Like many other areas in the Sunbelt, Jacksonville’s population growth has more than doubled the national average since 2010.

Thanks to low interest rates, we continue to see opportunities to earn attractive risk-adjusted returns by buying and renovating older, affordably-priced apartments in growing areas.

Business plan

The property was built in 2008, and is in solid condition overall, but could benefit from upgrades to make it more competitive. At the time of our acquisition, it was roughly 95% occupied. Our partner, American Landmark Apartments, plans to spend $4.9 million on improvements to the clubhouse, landscaping, pool area, and renovations on each of the apartments as they turn over. In-unit renovations are expected to include upgraded appliances, wood-look flooring, and modern finishes.

Following the completion of renovations, we plan to hold and manage the property for roughly ten years before seeking opportunities for an exit via sale or refinance. Our goal is to earn consistent income over the duration of our holding period, with the potential for long-term upside by selling the property for more than we put into buying and renovating it.

Why we invested

  • Strong relationship with experienced partner: American Landmark Apartments (ALA) currently owns and operates a real estate portfolio of over 24,000 units and valued in excess of $2 billion. Prior to this acquisition, we have partnered with ALA on ten other projects, including The Enclave at Lake Ellenor in Orlando, which achieved a 39% appreciation in appraised value in just 21 months.
  • Income-generating asset: The community was 95% occupied at the time of our investment, generating consistent cash flow through rental income.
  • Major nearby employers: Located on the northside of Jacksonville, the property is convenient to several major employers, including Amazon’s fulfillment center, which opened last year and employs 2,000 people.

As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.