RMC IN FLORIDA

Ocean Grove of Ponte Verde

Jacksonville, Florida is a market area chosen primarily for its strong job growth, economic stability, and the relative lack of condominium conversions. Jacksonville did not experience the job recession found elsewhere in the United States. In fact, its job growth has remained positive since 2000.

Our first project in this area is called Ocean Grove of Ponte Vedra. This apartment community is located in the heart of the famed Ponte Vedra golf resort area and is just around the corner from the Tournament Players Club (TPC) and Sawgrass. Ocean Grove also has its own private beach access within 1 mile of the community. This is a class A project in a triple A location. Unlike our previous projects to date, Ocean Grove is relatively recent construction. Built in 1992, the property requires a less comprehensive rehab, consisting primarily of new cabinets, carpet and appliances.

Our local partners, Don Fort of Perimeter Realty and Richard Zahn of Hersh Construction will manage the operations and construction, respectively. Don Fort has 30 plus years experience building and managing real estate in the Jacksonville area. He currently owns over 1,300 apartments in Jacksonville. Our Equity Partner is GE Capital (80%).

This project closed on June 24, 2004.

Executive Summary

Address:
1 Arbor Club Drive
Ponte Vedra Beach, FL 32082

Description: Ocean Grove of Ponte Vedra is a class "A" apartment community located in the heart of the famed Ponte Vedra beach and golf resort area of Jacksonville. The community is located next to the TPC, Sawgrass and the best school district in Jacksonville. The community has deeded private access to the beach. Ocean Grove of Ponte Vedra is on A1A and is less than 2 blocks from the Atlantic Ocean.
Location: It is located in prestigious, high-income Ponte Vedra Beach, Florida and is surrounded by luxury single-family subdivisions, gated golf course communities, upscale rental communities and private beach clubs in a unique resort setting. The outstanding location is convenient to all points of the city, approximately 13 miles from I-95, and only 8 miles from 9-A (I-295). The property is within minutes to a considerable amount of office space along the Butler Corridor in the Southside office submarket and downtown Jacksonville.
Investment Rationale: Jacksonville, Florida was chosen primarily for its strong job growth, economic stability, and the relative lack of condominium conversions. Ocean Grove is a class A project in a triple A location. Built in 1992, this complex requires less comprehensive rehab, consisting primarily of cabinets, carpet and appliances, yet it still offers an attractive arbitrage opportunity between apartments and condominiums.
Number of Units: 251
Web Site: www.oceangrovepontevedra.com