Portofino Apartment Sold for $40.7 Million

The Portofino apartment complex in Southside has sold for $40.7 million and will soon have a new look and a new name to go with its new ownership. Another condo conversion coming up? Perhaps we have to keep watch on this project.

Archon Group LP, an international full-service investment management and support services company based in Irving, Texas, bought the 10-year-old property on Gate Parkway from Gate Parkway Joint Venture.

"It's great for the property and great for the residents," Portofino property manager Brenda Gee said of the Oct. 25 acquisition. "We're changing the way the property looks and feels."

Representatives from Archon's corporate office declined to be interviewed, but the company's Web site notes two other Archon multifamily developments in Florida: the Aventine at Deerwood in Jacksonville, a 149-unit apartment complex on Touchton Road; and the Bala Sands in Orlando.

Archon bought its first property in Jacksonville in 2003 for $25.3 million.

Walchle Lear Multifamily Advisors partner Steve Lear said Portofino is in a great location near St. Johns Town Center, and Cushman and Wakefield of Florida Inc. director Karl Johnston said it could also be a viable property for conversion into condominiums if that market picks up again.

Archon intends to do some renovations to the 320-unit Portofino, Gee said, including a remodel of the existing clubhouse and model homes. Archon officials declined to disclose renovation details or costs.

Gee said the apartment complex will be renamed the Aventine at Town Center to match its sister property.

Gate Parkway Joint Venture, a partnership between The Vestcor Companies Inc. and Northwestern Mutual Life Insurance Co., bought the Portofino property in 1995 for $2.25 million. The taxable value in 2006, according to the Jacksonville Property Appraiser's Office, is $28.5 million. CB Richard Ellis broker Dan Allen represented the seller.

Archon Residential Management owns 20 multifamily communities in 10 states in the southeastern and western United States.

Source: Jacksonville Business Journal

Home Sales Fall Locally, Median Price Climbs

Sales of existing single-family homes in Jacksonville dropped 18 percent in the third quarter, according to figures from the Florida Association of Realtors, as sales fell by at least 11 percent in all 20 markets tracked by FAR.

The 4,173 existing single-family homes sold in the third quarter was down from 5,116 sold in the third quarter of 2005.

The median price of those homes rose 5 percent to $204,500.

Across the state, sales fell by 34 percent and the median price of those homes was virtually unchanged at $247,900, up $100 from a year earlier.

The chief economist for the National Association of Realtors held out hope for a rebounding housing market as early as the first quarter of next year. "Many potential buyers who have been taking a wait-and-see attitude or are being methodical in the search process are being enticed by lower home prices," David Lereah said. "Given a positive economic backdrop of lower interest rates and job creation, we expect sales activity to pick up early next year."

Sales of existing condominiums also fell statewide and locally. Across the state the number of sales fell 41 percent and the median price dropped 3 percent to $204,300. Local condo sales were down 49 percent, but the figures did not include data from the St. Augustine-St. Johns County Board of Realtors. The median price of local condos was $171,900, down less than 1 percent from a year earlier.

Source: Florida Association of Realtors

Housing Finance Authority Offering Below-Market Home Loans

Countrywide Home Loans Inc. is working with the Jacksonville Housing Finance Authority to offer below-market interest rate mortgages for first-time homebuyers in Duval County.

The $12 million first-time homebuyer program offers a rate of 5.6 percent for the first 80 percent of the purchase price of a home and 1 percent to 3 percent rate for the remaining 20 percent, an arrangement that eliminates the need for buyers to buy private mortgage insurance.

Countrywide is the mortgage servicer, program administrator and a participating lender in the program.

"Saving the funds needed for a home loan is the most significant barrier to purchasing a home for many first-time home buyers," said Dottie Sheppick, an executive vice president at Countrywide.

The program features conventional, FHA, Veteran's Administration and Rural Housing Service loans. Under the program the housing agency sells tax-free bonds to investors and uses the proceeds to make loans. Buyers must meet qualifying criteria that may include a maximum income and loan limit, and must pay at least $1,000 toward closing costs.

Other participating lenders include Bank of America, First Bank Mortgage, MHi Mortgage, National City Mortgage, Peoples First Community Bank and Wells Fargo Home Mortgage.

Source: Jacksonville Business Journal