Where Purpose Builds Value
Sunchase Companies, in a joint venture with Morrison Avenue Capital Partners, is raising equity for Sawgrass Sound, a 216-unit Class A multifamily development in the high-barrier Gulf Breeze submarket of the Pensacola MSA. The project is entitled under Florida’s Live Local Act, securing a 75% ad valorem tax abatement guaranteed through 2059.
Sawgrass Sound sits 3.4 miles from Tiger Point, Morrison Avenue’s active Gulf Breeze development, and shares the same construction and property management teams. That gives Sawgrass Sound an established local operating platform from day one instead of a new team learning the market.
The project is substantially through entitlement and predevelopment, with a total development cost of $45.3 million, or approximately $210,000 per unit, and a total equity requirement of $13.6 million. Proforma rents average $1,779, roughly 20% below current in-place rents at the most relevant Class A comparables in the market, with no rent growth assumed during construction.
Sawgrass Sound sits in Gulf Breeze, one of the Pensacola MSA’s most desirable submarkets. Strong household incomes, highly rated schools, and significant barriers to new development support long-term demand. The parkway carries more than 55,000 vehicles per day in the off-season, rising to 150,000 during Pensacola Beach events.
The project is entitled under Florida’s Live Local Act, which provides increased density and a minimum 75% ad valorem tax exemption that runs with the property. That benefit is projected to add approximately $350,000 to NOI annually, and the abatement is statutorily guaranteed through 2059.
Total sources are $45.3 million: a $31.7 million construction loan (70% loan-to-cost) and $13.6 million in equity. The construction loan assumes a 7% rate.
Projected Year 3 returns to investors are targeted at a 22% IRR, a 1.8x equity multiple, and a 7.2% development yield.
A Repeatable Playbook, Not a First Attempt.
Sawgrass Sound builds on the Tiger Point playbook. Tiger Point, located 3.4 miles away, remains on time and on budget, with first deliveries expected in December 2026. Because Sawgrass Sound shares the same general contractor, property manager, civil engineer, and interior design team, the execution risk that comes with a new team in a new market does not apply here.
A Disciplined Bet on the Right Submarket
Gulf Breeze combines durable rental demand with tight supply, two conditions that support long-term multifamily performance.
Gulf Breeze is anchored by strong household incomes and a stable renter base of families and professionals, with median household income of $104,050. Pensacola’s broader economy is supported by more than 80,000 military and defense jobs and a diversified base including healthcare and aerospace employers.
Pensacola has a limited pipeline of 1,117 units under construction, including 354 units controlled by Morrison Avenue. Vacancy sits at 6.6%, with 5.9% year-over-year rent growth.
Sawgrass Sound’s proforma rents average $1,779, well below peak Class A new construction pricing in the same submarket, positioning the property to lease up against a wide gap to the top of the market.
The Live Local Act abatement gives Sawgrass Sound a structural cost advantage most new development in the market does not have.
Class A, Garden-Style, Built for the Gulf Coast.
Sawgrass Sound is a 216-unit development with a mix of one, two, and three-bedroom floor plans averaging 845 square feet. Every unit includes smart home technology with keyless entry, quartz countertops, stainless appliances, a private patio or balcony, and a full-size washer and dryer. Community amenities include a resort-style pool, clubhouse with fitness center and business space, a pet park, and outdoor grilling areas.
Unit Mix
Conservative Underwriting, Built on What We Can Control
What We Buy
Sunchase and Morrison Avenue target multifamily development in Gulf Coast markets with strong area median incomes, stable occupancy, and a clear path to operational improvement.
How We Create Value
Sawgrass Sound’s value is built on a below-market rent basis, a Live Local Act tax advantage, and a construction and management team with a proven local track record at Tiger Point.
What We Protect
Every return driver in the underwriting is something the team can directly influence: acquisition basis, construction cost, tax treatment, and lease-up execution. Sensitivity analysis was run across rent growth, expense growth, vacancy, and exit cap rate scenarios to stress-test the projections.
Built by Operators, Led with Purpose
Our leadership team brings deep Gulf Coast market knowledge, disciplined underwriting, and a commitment to long-term stewardship of every asset we acquire.
Founder and Principal
Principal
CEO & Founder
Partner
An Experienced Local Operator
Arlington Properties will manage lease-up and ongoing operations at Sawgrass Sound. Arlington brings more than 50 years of multifamily operating experience, manages more than 33,000 units across 148 communities in 16 states, and already operates other properties within the Morrison Avenue portfolio, including the upcoming lease-up at Tiger Point.
An Operator Built for the Long Term
These beliefs define how we approach business, leadership, and our responsibility to investors, residents, and the communities we serve.
We believe business carries responsibility beyond profit. The decisions we make affect residents, employees, investors, and communities. That responsibility informs how we invest, how we operate, and how we grow.
Capital, properties, and trust are entrusted to us. We approach ownership with integrity, discipline, and a commitment to long-term outcomes rather than short-term optics.
We care deeply about people. That includes investors who place their trust in us, residents who call our properties home, and partners who work alongside us.
We communicate with honesty and clarity. Trust is built through transparency, accountability, and direct conversations, even when they are hard.
Ready to Learn More About Sawgrass Sound?
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