Southeast Property Group, a south Florida based, emerging multifamily sponsor acquired a $20.3 million-dollar, 328-unit, two property portfolio from New York based Chetrit Group.
Multifamily real estate investment firm, Southeast Property Group, has acquired a two-property, 328-unit apartment portfolio in Jacksonville, Florida. Due to the distressed nature of the properties, Colonial Forest and Northwood Apartments will be re-branded to The Belmont and Avenue at 1601, respectively. The Florida based investment firm has already begun a $9.7 million renovation program that includes significant updates, such as: new roofs, exterior paint, re-plumbing, amenity and landscape upgrades and other improvements, including updates to all of the apartment unit interiors.
“We are very excited to have had the opportunity to purchase both assets at below market pricing. We’re looking forward to improving not just the look of the properties, but the overall community for the immediate area as well as for the City of Jacksonville!” said Southeast Property Group Principal, Joe Rubin.
The properties were acquired from the Chetrit Group, headed by Joseph Chetrit and were originally acquired as part of an 8,000-unit portfolio, secured by a loan from JP Morgan. Southeast Property Group was presented the distressed opportunity from an off-market brokerage relationship.
“We are pleased with being able to transact with Mr. Chetrit. It was a very unfortunate situation, but thanks to our capital partners, we stand ready with plenty of dry powder to provide capital and expertise in these exact scenarios. In a very uncertain market, our team was able to move swiftly to make sure the transaction closed on the agreed upon price and terms.” said Southeast Property Group Principal, Richard Shuster.
Shutts and Bowen LLP attorneys, Scott A. Marcus and Philip C. Rosen, and Fox Rothschild attorney, Sean P. Coyle represented Southeast Property Group in the transaction.
About Southeast Property Group:
Southeast Property Group (www.sepropertygrp.com) is located in Fort Lauderdale, Florida and focuses on income producing multifamily properties in growing primary and secondary markets throughout the southeastern United States. SEPG seeks out deals that have strong in place cash-flow and offer a value-add strategy with operational upside. Its goal is to maximize NOI and produce the highest return possible for investors while providing safe, well maintained, affordable housing options for its residents.
By being immersed in the multifamily industry for nearly 20 years, it’s principals have a strong understanding of the target markets and have created deep relationships within the community. SEPG plans to grow its portfolio to 2,000+ units over the next several years throughout Florida and the southeastern United States.
