Sale of multi-housing community in Florida’s Space Coast MSA closes for $84.7M

ORLANDO, Jan. 10, 2022 – JLL Capital Markets announced today that it has closed the $84.7 million sale of The Haven at West Melbourne, a three-story, garden-style multi-housing community located in West Melbourne, Florida.

JLL represented the seller, Passco Companies, in arranging the sale to the buyer, JT Capital. JLL also represented JT Capital in arranging debt and equity financing for the acquisition. The buyer plans to leverage value-add efforts within similar assets in the immediate and surrounding areas to implement further performance growth.

Consisting of 13 buildings total, the community houses premium units averaging 1,164 square feet that feature full-sized washers and dryers, walk-in closets, window coverings, 9-foot ceilings, hardwood-style vinyl flooring, granite countertops and private balconies or sunrooms. Community amenities include a resort inspired pool and sundeck, an outdoor gourmet kitchen, a 24-hour fitness center with free weights, business center, children’s play park, billiards room, sand volleyball court, dog park and car care center.

Situated at 4550 Explorer Dr., the property provides access to top employers that include L3Harris, Collins Aerospace, Northrop Grumman, Patrick Air Force Base, Lockheed Martin and Blue Origin. With proximity to Melbourne Square, Hammock Landing, downtown Melbourne and Palm Bay Road, the community offers residents several retail and dining options within Melbourne. Additionally, the community is surrounded by premiere healthcare including Health First, Steward Healthcare, and Kindred Hospital as well as educational opportunities with Florida Institute of Technology and Eastern Florida State College. Residents also have easy access to travel options with the property’s close location to Melbourne Orlando International Airport and Port Canaveral.

"Our team at JT Capital saw this as a fantastic asset to add to our growing Florida apartment portfolio,” said Rohun Jauhar, Partner with JT Capital. “We are bullish on Florida, as we continue to see the state have the highest population growth in the country, a strong jobs outlook and a sensible business environment."

The JLL Capital Markets Sales and Advisory team representing the seller was led by Managing Directors Ken Delvillar and Jay Ballard. The team representing the borrower was led by Senior Managing Directors Melissa Marcolini Quinn and Lee Weaver with production support from Rob Rothaug and Emily Moallem.

“The Haven at West Melbourne received an overwhelming response in the market, as it represented an opportunity to implement an amenity and interior value-add program to one of the last assets completed within the prior development cycle back in 2010,” Delvillar said. “Having been institutionally owned for an extended period of time by Passco Companies, the asset’s tenant base was an attractive attribute due to high wages and education levels coupled with explosive property performance over the past couple of years and most notably over the prior two quarters.”

“While the property’s performance has remained at levels higher than the national average, JT Capital was able to recognize a unique value proposition due to their direct localized experience in the market and even within the neighborhood,” Quinn added. “We are very pleased to find our client a capital structure that suits their goals. The debt and equity financing is a non-recourse, interest only, floating-rate package with an interest rate cap and will allow a full modernization of the unit interiors and amenities. As long-term owners in the market, they are keenly conscious of the strong market growth fundamentals revolving around the local technology and space industries.” 

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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