The St. Joe Company JOE recently announced that it has formed a joint venture (JV) with HomeCorp to develop, manage and lease apartments in Watersound, FL.
Specifically, the JV will design, develop and construct Origins Crossings that will include 217 units of multi-family apartments. St. Joe has provided land near the Watersound Origins community, while HomeCorp will manage the construction and leasing matters for this project. Site development and construction are anticipated to begin in late 2019, such that apartment homes are open for lease in 2020.
Moreover, this marks the second partnership between the two companies. Notably, the companies had earlier collaborated to develop and construct an apartment community — Pier Park Crossings — situated in Panama City Beach, FL. It is currently under construction and will likely begin leasing in the spring of 2019.
Per management, this partnership is a strategic fit as HomeCorp has an impressive record of successful apartment developments and strong leasing experience.
Further, it highlights St. Joe’sstrategy of collaborating with top operators in a bid to strengthen its portfolio of income-producing properties and cater to housing demand in Northwest Florida. In fact, with high demand for apartment space in the region, the community will likely enjoy high occupation.
Notably, the company’s efforts to unlock recurring operating income opportunities will likely create long-term value for shareholders. Also, continued efforts to enhance its leasing portfolio have enabled St. Joeto record encouraging growth.
Notably, as of Dec 31, 2018, the company owned a portfolio of approximately 812,630 square feet of rentable commercial space, which was 93% leased. This compared to ownership of 813,602 square feet of rentable commercial space by the company, which was 87% leased, as of Dec 31, 2017.
St. Joe currently has a Zacks Rank #2 (Buy). Its shares have improved 7.8% over the past three months.
Other Stocks to Consider
Some other similarly-ranked stocks from the real estate space are BBX Capital Corp. BBX, currently sporting a Zacks Rank #1 (Strong Buy), and FirstService Corporation FSV and Jones Lang LaSalle Incorporated JLL, carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BBX Capital’s earnings per share (EPS) estimates for 2019 moved up 2.9% to 28 cents in the last 30 days.
FirstService’s EPS estimates for 2019 have been revised 3.1% upward to $1.97 in 30 days’ time.
Jones Lang LaSalle’s Zacks Consensus Estimate for current-year EPS has been revised 2.6% north to $11.34 in the past month.
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