2220 Gloria Circle, Pensacola, FL.
Water’s Edge is a 184-unit apartment complex built in 2004 and is located in Pensacola, Florida. Strategic Holdings acquired it on May 6, 2020. Water’s Edge is the second property acquired in Pensacola and is just a one-mile drive from Park on the Square, which we acquired in 2019.
Water’s Edge is our most recently built property in our portfolio, construction was completed in 2004 and it is in excellent condition. Currently, the apartments have three renovation levels. As long as the market is able to absorb it, we plan to bring all units to the top level while adding granite kitchen and bathroom countertops. Those renovations should allow us to target higher rents, potentially increasing the property’s value.
We believe Pensacola is a great place to own rental property for a number of reasons. The presence of Naval Air Station Pensacola provides a strong backbone to the economy. All Navy pilots start flight training on the base so that base is vital to the Navy’s long-term operations. Several ancillary jobs are in the area as well; -Navy Federal Credit Union employs approximately 10,000 civilians on its newly built headquarters, and data from Sperling's Best Places in March 2020 shows that local job growth is expected to exceed national averages over the next ten years. Also, rent growth has been outstanding. When we signed our purchase agreement for Park on the Square, average rents were $966, a few months later at closing they were $1,010, today they are $1,118. So, during the last 18 months, we have seen rents rise by over 15%. Healthy economic trends and a strong military presence make investing in Pensacola an easy decision.