By David Nelson, director, Investments and Advisory
ATLANTA (Jan. 4, 2012) – In August 2010, Carter Investments purchased 115 vacant units and an undeveloped pad site in Valencia, a condominium community in South Jacksonville Beach. The property was initially planned to include 245 units in an upscale, gated condominium community, but after completing construction on three of the five buildings and closing only 89 homes, the financial markets changed and the property went into distress. Carter purchased the remaining note from the lender, and entered into a friendly foreclosure agreement with the prior developer.
After a thorough review of the property, Carter Investments hired a new management company for the homeowners’ association oversight as well as Carter Program Development Services group to help manage the large projects. Since being taken over by Carter, the property has gone through a true transformation. There is now a focused effort on property maintenance and landscaping, a completed exterior painting project that added a waterproofing barrier to all buildings and a management staff that responds to homeowner needs. Financially and operationally, the property is now stabilized with the HOA budget and reserves being fully funded.
Carter Investments left no stone unturned during its review of the property and assessment of what it would take to bring Valencia back to market. In doing so, Carter invested significant capital in the addition of a park on the Building 5 pad site. What was once a construction site, is now being enjoyed by families and friends as they walk on a 1/8 mile walking trail, take their dog to the dog park, explore their green thumbs in the organic garden or compete with one another on the bocce ball courts.
Carter Investments also hired a new marketing and sales firm to execute its strategy of stabilizing Valencia and then releasing it for sales at today’s market pricing. Through a comprehensive marketing campaign that resulted in new pricing, an updated brand, new collateral and new model homes, Valencia was reintroduced to the buying community as an incredible value for someone looking for a place that feels like home but offers the luxurious simplicities of condominium living.
For the first time in a long time, Valencia has become a place that is attractive to someone looking for a home in the Jacksonville/Ponte Vedra Beach area. A buyer can now confidently submit an offer and know that they are buying into a stable community. Carter was even able to achieve FHA as well as FNMA approvals for the property, which has further signaled the strength and stability of the community as well as opened the buyer pool to people who require lower down payments.
Carter’s effort has been met with an extremely positive response from buying community. Prospects and sales agents have been impressed with the turnaround the property has taken, and Carter has successfully written more than 30 contracts in just the first year. With a healthy pipeline of prospects, the sales team feels very positive about 2012 and with enough sales, Carter Investments may even begin the interior construction completion of Building 4.
Carter is currently focused on value-add multi-family investment opportunities like Valencia. Carter closed four multi-family investments in the last year including two distressed condominiums and two apartments. Carter has a strong history and the capabilities to create and execute a strategy that will turn a property around. If you are looking for someone to invest in a value-add multi-family property, call John Akin or David Nelson at (404) 888-3000.