Jacksonville, NC Transaction Summary

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Consolidating its position across the Sun Belt, TG Advisory closed on 440 garden apartments in Jacksonville, North Carolina. This takes the total number of units closed in the last 12 months to over 1,000 and the total transaction value to over $90,000,000. This shows an appetite for quality workforce housing in good markets and highlights its reputation for closing deals amidst market uncertainty.  

The off-market transaction had a purchase price of $35,000,000. In a tight property market with contracting cap rates, TG Advisory was able to secure a well-maintained, sizeable portfolio which is income producing from the first day. The trend of strong rent growth (double-digit over the last 12 months) is expected to continue, supported by a growing appetite for multifamily units in a supply-constrained market and a program of value-add renovations. 

Experience and trusted relationships are a feature of how TG Advisory does business. Naftali Tilson of TG Advisory noted that, “during the pandemic, we have relied on our strong industry relationships to identify appealing properties and bring the most appropriate partner to the transaction.” 

TG Advisory was pleased to partner with the group at REM Capital for this transaction as they also look to aggressively build their portfolio in growth states. As with TG Advisory’s previous transaction, Kay Finance arranged the debt and worked with all parties to conclude favorable terms for a bridge loan which exceeded $25,000,000. 

The portfolio consisted of Lauradale Apartments; a 1970s build with 154 single story identical 2-bed, 1 -bath apartments, each sporting a veranda beloved by residents. Liberty Crossing has 286 town-house units also built in the 1970s. It contains a mix of 1-, 2- and 3-bed units in a particularly sought-after location. 

This is the second property TG Advisory has closed in close proximity to a major US military base. Adam Goodvach from TG Advisory said, “The search for quality deals at attractive prices is a challenge. We identified towns supported by major military bases as presenting opportunities some others overlooked. The bases in Fayetteville and Jacksonville have supported increasing valuations and provide income security during uncertain economic circumstances.” Jacksonville’s economic anchor is the Marine Corp base of Camp LeJeune and support bases.  

As the market continues to evolve, TG Advisory will seek further on- and off-market multifamily opportunities. Aware that limited supply, debt and inflation are pulling the market in different directions, TG Advisory has a strong bench of management, debt and equity partners able to take a long-term view of property ownership and close deals during fluid circumstance.