Apartment sales big in 2007, but not for conversion - Jacksonville Business Journal:

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The Hodges Boulevard community includes 35 acres and soldfor $53.643 million. Six of the 10 largest salesz were apartments. Ponte Vedra Julington Creek, Orange Park and a variety of Jacksonville neighborhoodsa all saw apartments change handswin 2007. And it isn't just sales that are all overthe map. Dan vice chairman at , said new apartmenrt construction has historically been in the Southeas areaof Jacksonville, but this year he's seeing more construction throughout the city and the Steve Lear, a partner at , said apartments remain a strong option for investors from all over the world.
Real estat investment trusts, pension funds and privater investors are among those wholike Jacksonville's track recordd of job growth and stable economy. Lear said some areas of Northeasg Florida will always be attractiveto investors, includingg the Southside, the St. Johnes Town Center area, Gate Parkway and the Beaches. Totally absent from the list for 2007 are apartmentds bought for conversion tocondominiums -- an investmenty that was strong in 2004 and 2005, but has tailedx off since. The country'x credit crunch is having an affecrt onapartment sales, Lear said.
It has takenn some investors who were interested three or four years ago out of the But strong playerswith well-preserved capital are stilpl able to buy. "Witgh increasing population, sustainable job growtb and rent growth, our market continues to be one of the strongesytin Florida," Allen said. "Jacksonville's excellent history of producingy jobs will bode well for an earliedr stabilization ofour market." Allen said the cost of capita has gone up, which has had a negativre impact on pricing, but he expects that will improvre later this year. There are some submarketx that have below average occupancyrightg now, but he also expects that to improve latedr this year.
There was speculation that Florida's recent insurancd problems could discourage investmenin apartments, but Allen said the increas in insurance rates that had an impact, especiallh after Hurricane Katrina, have decreasec by as much as 50 percent since 2006. An interestinv aspect of this year's list is the sale of the Soleio at PonteVedra apartments. The communitgy sold in 2007 for $33.4 million and was No. 7 on the overallk commercial propertysales list. In 2006, Soleiol sold for $28.2 millionj and was ranked No. 14. Other large apartments that sold in 2007 includee the Walden at Bartram Springs -- now called Centur y Bartram Springs -- in northwesyt St.
Johns County, which sold for $34.83 million; Links at Windsor Park on the which soldfor $32.6 and Lighthouse Bay on the Southside, which sold for $31.26 The smallest apartment sale to make the list was Oak Forest in Oranged Park. The 270-unit community with 17 acres soldfor $18.57