321-325 West 42nd Street
US - New York, NY
MYR 105,900,000 | 39 units
Jones Lang LaSalle Americas, Inc. is pleased to present Mezza (the “Property”), a 2008-built, 440-unit community that has recently undergone significant capital improvements and offers a new investor the ability to achieve substantial upside through operational improvements and additional interior upgrades. Featuring 9’ ceilings, a strategic location in Jacksonville’s growing Northside, and accretive in-place financing, Mezza is a prime opportunity to own a high-quality asset in one of the country’s top-performing markets. The remaining value-add potential and accretive in-place financing with a rate of 4.08% will further strengthen cash flow.
Following a major transformation project that modernized the Property’s common area amenities and unit interiors, Mezza’s physical attributes allow it to compete favorably with newer construction communities in its competitive set. Currently, the Property’s rents represent a 10% discount to its direct comps, creating significant mark-to-market potential. Additionally, a new owner can further drive value by installing vinyl plank flooring in the living areas in second- and third-floor units, adding granite or quartz countertops in the bathrooms, and installing smart locks and thermostats.
Significant Mark-to-Market Potential
While the Mezza’s significant enhancements have placed it on par with the newer construction assets in its immediate submarket, the Property’s rents are still below those being achieved at its competitive set, creating a prime opportunity for a new owner to push rents 10% while still being at a discount to the comps.
Recently Transformed, High-Quality Asset
Current ownership recently completed a significant capital investment to unit interiors and amenities that has positioned the asset as best-in-class within its competitive set. Specifically, unit upgrades included the addition of granite countertops in kitchens, USB charging stations, stainless-steel appliances, re-faced kitchen and bathroom cabinets, and new plumbing and light fixtures. In addition, the Property’s common areas underwent a major overhaul with a completely reimagined clubhouse, a state-of-the-art fitness center with brand new equipment, and a resort-style pool area complete with new furniture, grill areas, and a fire pit.
Interior Value-Add Opportunity
The Property’s recent improvements created modernized living spaces with high-quality interior finishes. The opportunity still exists for a new owner to further enhance unit interiors with vinyl plank flooring in the living areas of the second- and third-floor units, granite or quartz countertops in the bathrooms, smart locks and thermostats, and crown molding. Carrying out these renovations will allow a new owner to further distinguish the Property from its competitive set and drive additional rent premiums.