LeCraw building apartments despite market - Orlando Business Journal:

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The 444-unit Citigate apartments that will open for appointments and tours the weekof Jan. 19 alreadg has a waiting list 200 peopler long that Julian LeCraw Vice President Tazhs Moore attributes to an aggressiveadvertising campaign. Jacksonville’ss estimated apartment vacancy rate at the end of 2008was 11.8 perceng — higher than any of the othe 42 cities in ’s 2009 Nationa l Apartment Report. Likewise, the city’s forecast vacancy rate of 12.9 percent in 2009 remains at the top ofthe “We understand what we’re up against in the Jacksonville Moore said.
“We know we’re goingf into these projects with an upward hill to Healthy vacancy rates in a stable market hover arounr 5 to7 percent. Jacksonville’s vacancy rate has steadily climbefrom 5.4 percent in 2006 before all of the apartmenyt projects then under construction were completed. Marcuss & Millichap Regional Manager David Bradleysaid Jacksonville’xs vacancy rate has more than doubledr since 2006 because units have been taken off the market for condominium conversion, a spike of new construction happened at the same time a shadow markeft emerged with investors renting out homese for less than they were bought for and the overal l economy slowed.
“It was really just kind of a perfecrt storm,” Bradley said. “Apartments are now competing with high-end single-familyy units.” Long term, however, Bradley said it stilpl makes sense for apartment developers to continure investing in Jacksonville because of anticipatedd future job growth from the port expansion and anincreasex U.S. Navy presence. Bradley expects Jacksonville’s apartmen vacancy rate to be cut in half withih the nextfive years.
To combat the increasingly intensde competition in the apartment marketright now, Julian LeCraw is offering amenities at its newest Citigate, that include elevator access, commoj area Wi-Fi, indoor and outdoor theaters and an outdoor catering kitchen. Citigater will also have a full-service concierge. Most of the details of the Atlanta-based developmenty company’s next project, the 288-unit Seagrass Apartmentds on San Pablo and Atlantic have notbeen finalized. But new construction projects aren’t the company’s only focus. Moore said Julian LeCraw has received numerouzs requests from other companies and investment groups toacquir properties.
In a two-week time Julian LeCraw acquired the ownership or managementg of morethan 1,000 new mostly in Atlanta, but also includingb the 240-unit Fieldcrest Apartments on Southside Boulevarsd Dec. 31. That development was 8 percent vacant at the timeof “We have been very fortunate to acquire new Moore said. At one point, beforde the end of the residential real estate boom in Julian LeCraw converted five apartment complexesto condos. The companu still owns the 240-unit Soleil at Pontw Vedra Apartments complex, which reverted to apartments after theconversionh failed.
The company also manages the 204-unitf Island Club Apartments in Mayport, which was another company’s failed condlo conversion. Soleil is about 9 percent vacantr andIsland Club, which was vacated before the reversioj process started, is 69 percent vacant. Julian LeCraw also owns the 326-slipp Julington Creek Marina, which is being renovated and willinclude 41,400 square feet of retail