Target Information

West Woods Apartments is a 268-unit, institutional-quality multifamily community situated in Pensacola, Florida. The property, which was constructed in 2016 and 2017, spans 14 acres and features twelve three-story, wood-frame residential buildings, a clubhouse, a leasing office, and two maintenance buildings. With its relatively recent construction, West Woods maintains high-quality amenities and is 96% occupied, providing a stable income for investors.

Each apartment unit at West Woods boasts modern features, including gourmet kitchens with granite countertops and stainless steel appliances, plank flooring, and spacious walk-in closets. The community offers one-, two-, and three-bedroom floor plans that average 1,087 square feet, catering to a variety of family sizes and preferences.

Industry Overview

Pensacola, Florida, is experiencing a robust growth phase within its multifamily housing sector, driven by steady population increases and a diversified economy. The presence of significant employers, such as the Navy Federal Credit Union, bolsters demand for quality residential properties. With an attractive cost of living and access to local amenities, the region appeals to both families and young professionals alike.

The multifamily real estate market in Florida has shown resilience, with an influx of new residents seeking rental properties in urban and suburban areas. This trend is spurred by the state's favorable climate, economic growth, and improvements in infrastructure, enhancing the investment landscape for multifamily assets.

Furthermore, the affordability challenges in many U.S. markets have led to a shift in demand toward rental units in high-quality developments. As a result, properties like West Woods are positioned favorably to attract affluent tenants who prioritize modern living environments and convenient access to major transportation routes and employment centers.

Rationale Behind the Deal

The sale of West Woods Apartments represents a strategic opportunity for investors looking to acquire well-located assets with potential for income growth. The existing occupancy rate of 96% indicates strong market demand and tenant retention, bolstering the investment's attractiveness. Additionally, the ability for the buyer to assume HUD financing with below-market loans expiring in 2061 provides a significant financial advantage, improving cash flow and overall investment returns.

Investor Information

The buyer of West Woods Apartments has not been disclosed; however, the transaction was facilitated by David Etchison, Managing Director at Berkadia Central & North Florida. Berkadia is recognized for its comprehensive approach to commercial real estate transactions, offering expertise that attracts investors seeking quality multifamily properties in attractive markets.

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From an investment standpoint, acquiring West Woods Apartments may be a sound decision for investors aiming to capitalize on the growing multifamily market in Pensacola, Florida. The strong occupancy rates, coupled with the advantages of existing HUD financing, present a lower-risk opportunity for income generation. Furthermore, the property's contemporary features and amenities cater to a discerning tenant demographic, enhancing potential rental income.

Moreover, the location of West Woods along West Nine Mile Road provides not only visibility but also immediate access to major economic hubs, increasing its desirability among residents. The ongoing growth in the Pensacola area should continue to drive demand for quality housing, making this investment attractive for the long term.

Considering these factors, the investment in West Woods Apartments could yield favorable returns. Its institutional quality, strong demand dynamics, and the financial advantages of below-market financing are key indicators that support the viability of this investment.

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