Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present Princeton Parc (the “Property”), a 2003-built, concrete block, 200-unit community located in Melbourne, Florida, a region in the Space Coast experiencing rapid economic growth and boasting robust multi-housing fundamentals. Princeton Parc offers a new investor the ability to achieve substantial upside through a proven value-add business plan, accretive in-place financing, and a strategic location in the high-performing Melbourne submarket. Constructed in the early 2000’s, the Property is ripe for upgrades as 96% of units have yet to be fully renovated. The units that have been renovated thus far have achieved average value-add premiums of over $350 for classic to fully renovated.
Compelling Value-Add Opportunity
Princeton Parc is achieving an average premium of over $350 per month on fully renovated units and 96% of units (193 units) are yet to be fully renovated, allowing a new owner to modernize the interior living spaces and drive additional rent premiums as supported by the market.
Concrete Block Construction Ensures Lower Insurance Cost and Fewer Cap-Ex Issues
The Property was built with concrete block and includes hurricane resistant glass windows, which significantly reduce storm damage risk, prompting lower insurance premiums.
Spacious, Open-Floor Plan Style with 2-Bedroom Unit Majority
The Property offers large units averaging 1,154 square feet, with 2-bedroom units comprising 68% of the total, giving residents and prospective tenants a more spacious alternative to comparable properties and more attractive rents from a per square-foot standpoint.
Convenient Access to Top Employers and Demand Drivers
Located off the heavily trafficked Palm Bay Road retail node with proximity to Interstate-95, Princeton Parc is only minutes from global-leading companies, headquarters, and higher education institutions within Melbourne’s renowned high tech and aerospace hub.
Ideal Multi-Housing Fundamentals
Located within the #1 U.S. state for in-migration and population growth, the Melbourne submarket has experienced nearly 16% annual rent growth over the past 3 years with only 1,156 units currently in the pipeline, including zero planned developments.
Top-Ranking Local Schools Cater to Melbourne’s Engineering Hub
Tapping into Melbourne’s highly educated population, leading employers in L3Harris Technologies and Northrop Grumman directly partner with local schools including Florida Institute of Technology (FIT) in design and Master’s programs, helping rank FIT as the 17th best school in the 2023 Global Employability Survey.
Accretive Assumable In-Place Agency Financing With Room For a Supplemental
There is a $24.25M senior Freddie Mac loan in place that matures in January 2030. The loan has a 3.73% fixed rate and remaining interest only period through December 2024. Furthermore, there is potential to add additional proceeds to the loan through Freddie Mac’s supplemental financing process.