Growthspotter

By AMANDA RABINES

Lloyd Jones, a Miami-based real estate investment, development, and management firm, is actively looking to invest in Central Florida multifamily properties.

The company blasted out a press release last week, publicizing its most recent acquisition in the market– a 306-unit apartment community directly east of Orlando’s tourism corridor– along with its intent to focus on picking up more Orlando properties that are “well-positioned for value-add opportunities,” Ashley Socarras, executive vice president of investments, said in the release.

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By Pavel Cazacu

Multifamily investment firm Lloyd Jones has finalized the $65.3 million purchase of Arium Grandewood, a 306-unit Class B community in Orlando, Fla. This is the company’s fourth Orlando apartment acquisition. Bluerock Real Estate sold the property, according to Yardi Matrix data.

The asset previously traded in November 2014, when Panther Properties sold it for $43.3 million. Walker & Dunlop provided a $29.4 million Fannie Mae acquisition loan at the time.

Located on nearly 27 acres at 3701 Grandewood Blvd., the 11-building community opened its doors in 2005. The unit mix includes one- to three-bedroom floorplans with sizes between 801 and 1,551 square feet. The amenity package includes a fitness studio, a business center, volleyball and basketball courts, a resort-style swimming pool and a playground.

Lloyd Jones will invest $2.7 million in a renovation program to upgrade about 95 percent of the apartments and will rename the property Grandewood Pointe. The company’s investment strategy centers around established Orlando residential assets that present value-add opportunities, according to Ashley Socarras, the company’s executive vice president of investments.

Last year, Lloyd Jones paid $47.2 million for Avisa Lakes Apartments, a 292-unit property in Orlando. Oak Residential Partners sold the asset.

https://www.multihousingnews.com/post/lloyd-jones-buys-orlando-community-for-65m/

ORLANDO, FL—Lloyd Jones, a multifamily investment firm based in Miami, has acquired Arium Grandewood, a 306-unit apartment community built in 2005. The community, which is located in the fast-growing South Orlando submarket, is the fourth property Lloyd Jones owns and operates in the area. Lloyd Jones plans to execute a comprehensive value-add business plan to upgrade the property’s interiors. Arium Grandewood, which will be rebranded as Grandewood Pointe, will be professionally managed by Lloyd Jones Multifamily Management.

Arium Grandewood is a garden-style apartment community with a mix of one- two-, and three-bedroom floor plans and an amenity package that includes a resort-style pool, BBQ pavilion, fitness center, volleyball court, and business center. The South Orlando apartment community is just south of the Beachline Expressway, and within minutes of two Fortune 500 companies (Lockheed Martin and Darden Restaurants), office and industrial parks, Lake Nona Medical District, and the 500-room Ritz-Carlton and 1,000-room JW Marriott.

“The acquisition of Arium Grandewood is part of our strategic investment plan focused on established Orlando properties that are centrally located and well-positioned for value-add opportunities,” said Ashley Socarras, EVP of Investments for Lloyd Jones.

Lloyd Jones’ plans for the property include $2.7 million in capital improvements that include a two-level interior renovation package program comprising 95 percent of the units. “We believe that there is an opportunity to substantially upgrade interiors to create best-in-class units,” explained Stuart Keller, SVP of Asset Management for Lloyd Jones. “The community’s convenient location, and our planned capital improvements will appeal to the growing number of young professionals moving to the area.”

“We are excited to acquire our fourth property in the dynamic Orlando market,” said Christopher Finlay, Chairman/CEO of Lloyd Jones. “We anticipate that the market will continue to benefit from in-migration and favorable employment drivers which will help support demand for a well-located, upgraded multifamily community.”

 

ABOUT LLOYD JONES

Lloyd Jones, LLC is a real estate investment and development firm with 40 years in the industry under the continuous direction of Chairman/CEO, Christopher Finlay. Based in Miami, the firm has divisions in multifamily investment, development, management, and senior living. Its investment partners include institutions, family offices, and its own principals. To learn more about Lloyd Jones, visit www.lloydjonesllc.com.

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On January 20, 2021, Lloyd Jones hosted its first annual Excellence Awards. Held virtually, the awards ceremony honored exceptional performance among individual employees and entire onsite teams within its multifamily and senior housing communities. After calling for nominations in a multitude of categories, a committee reviewed the nominees and selected the winners, who were announced during the awards ceremony.

The winners are listed below:

Property of the Year (Multifamily)
Vero Green Apartments, Vero Beach, FL

Property of the Year (Senior Living)
Meetinghouse at Collins Cove, Jacksonville, FL

Manager of the Year
Erin Balta
Ventura Pointe Apartments, Pembroke Pines, FL

Assistant Manager of the Year
Sandra Plappert
Waters Edge at Harbison, Columbia, SC

Maintenance Supervisor of the Year
James Rendon
The Granite at Tuscany Hills, San Antonio, TX

Leasing Consultant of the Year
Carmen Lopez
Fountains at Forestwood, Fort Myers, FL

Maintenance Tech of the Year
Uldarico Haeckmann
Carlyle Court Apartments, Orlando, FL

Maintenance Associate of the Year
Lugene Haynes
The Westcott Apartments, Tallahassee, FL

Most Essential Worker
Tammy Weaver
The Granite at Thirty-Fourth, Amarillo, TX

Most Essential Worker (Senior Living)
Debra Richmond
Meetinghouse at Daytona, Daytona Beach, FL

Helping Hand Award
Ventura Pointe Apartments, Pembroke Pines, FL

O.W.L. (Outstanding Wisdom Leadership)
Elizabeth Fisher-Bishop
Meetinghouse at Bartow, Bartow, FL

Social Media Award
Shamrock of Sunrise, Sunrise, FL

Rising Star Award
Vero Green Apartments, Vero Green, FL

Brightest Star Award
Shamrock of Sunrise, Sunrise, FL

WOW Customer Experience Award
Ventura Pointe Apartments, Pembroke Pines, FL

The Finlay Award
Kelly Thomason
Vero Green Apartments, Vero Beach, FL

Dedication Award
Yasmany Lopez
Meetinghouse at Bartow, Bartow, FL

Most Improved Property Year over Year
Lake Forest Apartments, Daytona Beach, FL

Lloyd Jones’ multifamily and senior housing management leaders were thoroughly impressed with the nominations they received in each category. “Choosing just one winner for each award was a very tough decision,” said Mandy Doucet, EVP of Operations for Lloyd Jones Multifamily Management. “And, while we couldn’t present the awards in person this year, we’re so glad to have created an opportunity to recognize our onsite team members who’ve gone above and beyond to serve their communities.”

MIAMI—Lloyd Jones, a multifamily investment firm based in Miami, recently sold Deerwood Park Apartments, an apartment community in Jacksonville, Florida, to provide favorable returns to its investors after adding value to the property through a capital improvement project.

Lloyd Jones acquired the 282-unit, garden-style community in October 2017 and sold it in December 2020 after surpassing the projections of the original business plan. The firm’s joint venture partner in the deal was a Chinese wealth fund group.

“Deerwood Park outperformed our initial underwriting of an anticipated five-year hold period to meet its target yield and IRR parameters within just three years. We consider this a highly successful exit for our partner and ourselves,” said Ashley Socarras, who oversees the entire investment division for Lloyd Jones as the firm’s EVP of Investments.

During the hold period, Deerwood Park Apartments was professionally managed by Lloyd Jones Multifamily Management, who maintained the property at a healthy occupancy while executing the interior and exterior enhancements. Upgrades included converting the indoor basketball court to an oversized fitness center with a yoga studio and creating a co-working lounge.

“The Southside submarket of Jacksonville is one of the area’s strongest for millennial renters and young professionals,” added Stuart Keller, SVP of Asset Management for Lloyd Jones. “The capital improvements we chose to implement at Deerwood were appealing to this growing demographic.” Jacksonville is rapidly expanding in the finance, technology, and healthcare sectors, with major corporations like Florida Blue, Bank of America, and SoFi calling the Southside area home.

“I am thrilled that we produced these results for our multifamily investment partners,” stated Chris Finlay, chairman/CEO of Lloyd Jones. “Our firm is very optimistic for the year ahead.”

 

ABOUT LLOYD JONES

Lloyd Jones, LLC is a real estate investment and development firm with 40 years in the industry under the continuous direction of Chairman/CEO, Christopher Finlay. Based in Miami, the firm has divisions in multifamily investment, development, management, and senior living. Its investment partners include institutions, private investors, and its own principals. To learn more about Lloyd Jones, visit www.lloydjonesllc.com.

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The Jacksonville region is one of the most attractive MSAs in the country for multifamily development and investment. Its strong population and employment growth, plus rising income levels continue to drive demand. In fact, 2019 marked the fourth consecutive year that multifamily investment sales crossed the billion-dollar mark in the Jacksonville market. [i] And according to CBRE’s 2021 Market Outlook, Jacksonville is one of the Southeast metro areas that has responded the best to the economic challenges caused by COVID-19 and is consequently well-positioned for solid performance in 2021.[ii]

Attractive Lifestyle Drives Growth

Jacksonville is North Florida’s largest MSA with a population of 1.5 million and is the sixth-fastest-growing MSA in the country.[iii] From 2013 to 2018, Jacksonville’s population grew by over 10%, far outpacing the national average of 3.5%.[iv] According to Colliers International, the primary growth driver is in-migration, fueled by the region’s relative affordability, strong demographics, skilled labor pool, high quality of life, and the state’s business/tax-friendly attitude. EMSI, a labor market analytics firm, ranked Jacksonville as the #1 city for talent acquisitions last year, and Forbes named Jacksonville as the #2 best city for young professionals.[v]

It’s Where the Jobs Are

Bordering the Florida/Georgia line, the Jacksonville region is central to the booming Southeast, and naturally positioned for growth. According to the Jacksonville region’s economic development agency, one in every six jobs is in the health and sciences sector. The region’s healthcare landscape includes Mayo Clinic, a Baptist MD Anderson Cancer Center, the University of Florida Proton Therapy Institute, and cutting-edge medical companies including Medtronic, McKesson, Availity, and Forcura.

In addition to healthcare, job growth is found in manufacturing, logistics, financial services, and technology. Jacksonville is now home to over eighty national/divisional headquarters, three Fortune 500, and five Fortune 1000 companies.

Strong Multifamily Market

Colliers International reported that the Jacksonville multifamily market continued its strong record of growth in the final months of 2019—with Q4 marking the 19th consecutive quarter that overall multifamily occupancy remained above 94%.[vi] And Mashvisor, in its review of top Florida multifamily markets, ranked Jacksonville #4, with a multifamily cap rate of 2.0%. [vii]

Resilient Multifamily Market

According to YardiMatrix, the Jacksonville metro area ranks #3 in terms of investment activity, with 11 deals closed in the first four months of 2020 for a total of $349 million, up 50 percent from the same time last year.[viii] By year’s end, developers are projected to deliver more than 3,000 units in Jacksonville, but that will depend on the overall impact that the pandemic has on construction activity. Early indications are that the region’s construction sector remains strong, with Jacksonville being the only MSA in Florida to show a rise in construction employment between March and April, the height of the pandemic shutdown.[ix] CBRE, which cited Jacksonville as one of the best opportunities for achieving expected revenues and seeing solid market performance in 2021, also noted that multifamily has weathered the 2020 recession better than most property sectors and is looking at a quicker rebound next year. [x]

The Opportunity

Lloyd Jones, LLC has extensive experience as an investor, owner, and manager in the Jacksonville multifamily market. We have worked with investors to find the right multifamily property to generate the best possible returns for four decades, through numerous economic cycles. If you are looking to capitalize on multifamily opportunities in the Jacksonville market, please let us know. To learn more, visit https://www.lloydjonesllc.com/

[i] https://www2.colliers.com/en/research/jacksonville/q4-multifamily-report-2019

[ii] https://www.cbre.us/research-and-reports/2021-US-Real-Estate-Market-Outlook-Multifamily

[iii] https://jaxusa.org/tools-resources/rankings/

[iv] https://www.globest.com/2020/02/11/jacksonvilles-multifamily-sales-cross-1b-mark/

[v] https://jaxusa.org/industry/headquarters/

[vi] https://www.globest.com/2020/02/11/jacksonvilles-multifamily-sales-cross-1b-mark/

[vii] https://www.mashvisor.com/blog/how-to-find-multi-family-homes-for-sale-in-florida/

[viii] https://www.multihousingnews.com/post/top-5-florida-markets-for-transaction-activity/

[ix] https://www.jaxdailyrecord.com/article/jacksonville-only-area-in-state-to-show-a-rise-in-construction-employment-between-march-and-april

[x] https://reintelligent.com/cbre-outlook-quicker-rebound-expected-for-multifamily-in-2021/

The long-term outlook for the U.S. multifamily market is strong, according to CBRE Economic Advisors’ recent forecast, with a predicted demand for an additional two million units over the next decade.[i] One of the key indicators driving this demand is the millennial generation. Based on data from the U.S. Census, millennials have surpassed baby boomers as the nation’s largest adult generation. There are now 72.1 million millennials, which is defined as anyone born between 1981 and 1996 (ages 24 to 39 in 2020). [ii]

According to results from a national survey conducted by Allegion, a global home security company, 72 percent of millennials live in apartment buildings, and 75 percent plan to stay six months or longer.[iii] With three-quarters of the millennial population living in apartments, multifamily property owners and managers who understand this cohort and how best to retain them as residents will be well-positioned for success.

 

Millennials prefer the suburbs

Demand Institute’s survey of more than 1,000 millennial households revealed that over a five-year period, they spent $600 billion on rent, more on a per-household basis than any other generation.[iv] In that same survey, millennials reported that when they do move to their next apartment, it’s because they’re looking for more space. And where they are finding that space is the suburbs, which runs counter to millennials’ reputation as the quintessential urban dweller.

Nearly half of the millennials surveyed wanted a suburban location for their next rental, with all the attendant benefits: more space and safer streets. Communities that can offer the convenience and walkability of urban living coupled with the larger units will thrive in the next decade. According to research by the Pew Research Center, more than half of millennials are not married, and those who are got married later in life. Women millennials are also less likely than previous generations to have given birth at this stage in their life. Three in ten millennials live with a spouse and child compared to 40 percent of GenXers (individuals born between 1965 and 1980) at a comparable age.[v] So while they are delaying marriage and families, millennials still plan to be married or have kids in the next five years.[vi] This subgroup of “maturing” millennials are often “auditioning” the suburbs before raising a family.  This cohort, in particular, expects amenity-rich communities but at more affordable rents.[vii]

 

Luxury apartment living

The National Multifamily Housing Council reports that in addition to the larger, more affordable space of a suburban development, millennials also want top notch-amenities. Millennials rank the following as the most desirable amenities: fitness centers, kitchen islands, a resident portal, outdoor recreation facilities, and community Wi-Fi.[viii] Beyond those amenities, there’s interest in security and concierge services, in-unit laundry, and conveniences such as dog parks, electric car charging stations, and recycling services. [ix]

Smart apartment features are high on their list as well. With 57 percent of millennials using delivery services, and 63 receiving one or two packages per week, upgraded package centers are a must for multifamily communities. [x] Automated package locker systems are gaining popularity because they help mitigate package clutter and increase security for resident delivery. Ideally, millennials want an automated locker system that’s centrally located, easy to retrieve and with anytime access. According to data from Package Concierge, 83 percent of residents would prefer 24/7 access to their lockers.[xi]

 

What does this mean for the multifamily investor?

The forecast demand for two million additional units over the next decade, creates a dynamic investment environment for the multifamily sector and new opportunities for investors, buyers, and developers. As the largest living generation, millennials know what they want, and the multifamily housing market is responding. Millennials are motivating multifamily operators to provide the amenities, technology, and service that they demand.

Retaining a property management firm with a keen understanding of marketing and leasing to the millennial generation is essential for investors and buyers who want to capitalize on this growing market. Lloyd Jones Multifamily Management, a division of Lloyd Jones LLC, has 5,500 multifamily units under management in key markets through Florida, Texas, and the Southeast. To learn more about our services, visit https://www.lloydjonesllc.com/.

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[i]     https://www.cbre.com/investor-hub/two-million-demand-for-us-multifamily-to-rise-over-next-decade?article=fadaf913-6ca8-4aca-aa56-0de17a4ff025&feedid=bbc4df08-52a9-40f7-8c05-a316cc1cb8d7&

[ii]    https://www.pewresearch.org/fact-tank/2020/04/28/millennials-overtake-baby-boomers-as-americas-largest-generation/

[iii]   https://us.allegion.com/en/home/markets/multifamily/resources/millennials-in-multifamily.html#

[iv]   https://www.nielsen.com/wp-content/uploads/sites/3/2020/05/millennials-and-their-homes-final.pdf

[v]    https://www.pewsocialtrends.org/2020/05/27/as-millennials-near-40-theyre-approaching-family-life-differently-than-previous-generations/

[vi]   https://www.nielsen.com/wp-content/uploads/sites/3/2020/05/millennials-and-their-homes-final.pdf

[vii]  https://mosaiccons.wpengine.com/how-multifamily-investors-are-urbanizing-the-suburbs/

[viii] https://www.nmhc.org/news/boomer-vs-millennial-wants/

[ix]   https://mosaiccons.wpengine.com/how-millennials-are-influencing-the-multifamily-housing-market/

[x]    https://us.allegion.com/en/home/markets/multifamily/resources/millennials-in-multifamily.html#

[xi]   https://www.multifamilyexecutive.com/technology/integrating-package-lockers-in-2019-what-apartment-managers-need-to-know_o

MIAMI—This month, Lloyd Jones Multifamily Management, the property management division within Lloyd Jones LLC, launched its newest corporate giving program, Lloyd Jones Living.

Through Lloyd Jones Living, the firm’s property management teams nationwide will plan and host quarterly themed acts of community service or giving. Events include volunteering at a food bank during Thanksgiving, hosting a back-to-school backpack drive for their young residents, or a spring beach cleanup day to benefit local marine life. On-site teams receive marketing and PR support from Lloyd Jones’ corporate marketing team.

“Our on-site teams have long been passionate about serving their local communities,” said Mandy Doucet, EVP for Lloyd Jones Multifamily Management. “Lloyd Jones Living provides structure and support to help their philanthropic efforts reach further.”
Lloyd Jones Living was created with the company’s mission in mind: providing quality housing that makes lives better. “As we improve the lives of our residents and our local communities at large, we create environments where people truly want to live. That’s also a benefit for our investors and owners,” explained Doucet.

With the holiday season approaching, the theme of the program’s premiere quarter is appropriately titled, “Making Spirits Bright”. On-site teams are currently planning their Thanksgiving or holiday themed events and activities to bring cheer to their local communities.

To learn more about the Lloyd Jones Living program, visit https://www.lloydjonesllc.com/divisions/lloydjonesliving/.

About Lloyd Jones LLC
Lloyd Jones, LLC is a real estate investment and development firm with 40 years in the industry under the continuous direction of Chairman/CEO, Christopher Finlay. Based in Miami, the firm has divisions in multifamily investment, development, management, and senior living. Its investment partners include institutions, private investors, and its own principals.
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Waters Edge at Harbison in Columbia, SC is a 204-unit garden-style apartment community acquired by Lloyd Jones in 2016.

The Columbia multifamily market as a whole suffered a challenging period in summer 2017, when one of the area’s largest employers, V.C. Summer, suddenly shut down production of its nuclear power facility. More than 5,000 local jobs were lost virtually overnight.

Nearly three years later, Waters Edge has come back stronger than ever—and even six months into the pandemic is currently pre-leased at 99.02%. Forward-thinking approaches, exceptional customer service and innovative technology have all contributed to the community’s success.

Waters Edge offers flexible deposit options: the standard security deposit, to be refunded at the end of the lease; $125 non-refundable deposit; and for those renters who don’t qualify due to a low credit score or inadequate rental history, Liberty Rent—a provider of rental guarantee contracts—which acts as a guarantor for their first year of rent. “Helping all applicants become paying residents, especially those who need a second chance, has definitely contributed to our high occupancy, despite the financial impact of COVID-19,” said Joei Lemacks, business manager at Waters Edge. “And because we know that building a credit score is one of the most important tools to personal financial health, we also offer RentPlus, a service that reports their rent to credit agencies. We even had one resident who increased her credit score enough to become a homebuyer.”

Other factors that helped Waters Edge gain a competitive edge this year were shifting to self-guided tours almost immediately, and purchasing electrostatic sprayers, which allows for quicker, more complete sanitizing of public areas and amenities. “Implementing these procedures helped give us more time to focus on leasing,” said Joei. “We also added the Knock CRM, a leasing tool that enables our team to respond and follow up on inquiries from prospective residents more quickly.”

Personally connecting with residents, whether at lease renewal time or working through challenging times, is another area where Waters Edge excels. Earlier this year, in anticipation of residents who may be faced with financial struggles due to job loss or furloughs, the staff recorded personal video messages for the residents, asking them to reach out to the office if they expected difficulty in paying their rent. “It was a sincere touch that I think went a long way to let our residents know we genuinely care about them, versus simply sending an email reminder about rent being due,” said Joei.

Waters Edge prides itself on exceptional customer service, which contributes to a high renewal rate among residents. “We have an outstanding team in place at Waters Edge,” said Mandy Doucet, executive vice president of property management for Lloyd Jones, LLC.

“Everything we do reflects the Lloyd Jones core values of Passion, Compassion and Optimism, and it shows in our work, our attitudes, and how we interact with our residents. And it’s putting these principles in action that ultimately benefits our investors.”