9009 University Parkway, Pensacola FL
Park on the Square, a 240-unit apartment complex built in 1999 is located in Pensacola, Florida. It was acquired by Strategic Holdings on February 27, 2019.
We believe the property is in excellent condition and Strategic is planning some minor renovations. Renovations include new backsplashes, granite countertops and possibly some exterior enhancements. With those upgrades, we believe we’ll be able to increase rents which would potentially translate to an overall property value increase.
The local economy is strong with outstanding job and rent growth. Naval Air Station Pensacola employs 16,000 military and 7,400 civilian personnel. Navy Federal Credit Union (the world’s largest credit union with 6.8 million members) is expanding their Pensacola headquarters to 1.5 million square feet and expected to employ 10,000 people by 2020. We believe evidence of the Pensacola apartment market’s strength can be seen in Park on the Square’s average rents. Average rents were $966 when Strategic signed the purchase contract, and rents were $1,010 when we closed about 3 months later (that’s entirely due to the strength of the local economy, not renovations).