A developer scored a $53.5 million construction loan for a 250-unit apartment complex in Boynton Beach, amid a multifamily supply overhang in South Florida.
TM Real Estate Group plans the Shalimar at Boynton Beach project with 10 three-story and four-story buildings, a nearly 10,000-square-foot clubhouse and 4,300 square feet of retail in two additional buildings at 3570 West Boynton Beach Boulevard, according to a city commission meeting agenda from 2022, when the project was approved.
Charlotte, North Carolina-based Truist Bank is the lender of the construction loan.
TM Real Estate, based in Coconut Grove, paid $16 million for the 12.5-acre development site in 2021, records show.
Founded in 2005, TM is a development, investment and management firm focused on South Florida multifamily and mixed-use properties, according to its website. Matthew Pellar is CEO of TM.
Its portfolio includes the 240-unit Shalimar at Davie complex at 4901 Shalimar Lane in Davie, and the 240-unit Shalimar at Plantation West at 8500 Cleary Boulevard in Plantation.
In 2021, TM sold the Lincoln Square office complex consisting of a pair of five-story buildings at 18405 Northwest Second Avenue in Miami Gardens for $15.4 million.
South Florida’s multifamily market has slowed compared to the boom years of 2021 and 2022 when the tri-county region experienced an influx of out-of-state residents and record rent hikes. After developers seized on the bonanza, they completed a record 18,600 units last year, outpacing 15,000 in new leases, according to CoStar Group data. This led to slower lease-ups and increased concessions. Median monthly rent hit $2,328 in January, down nearly 2 percent, year-over-year, according to Realtor.com.
Demand could catch up to supply late this year or next year, partly due to a drop in construction starts, experts said.
Construction loans have flowed, including for multifamily projects. Last month, White Oak Development scored $67 million to build a pair of four-story buildings with 286 apartments at 4181 and 4233 Davie Road in Davie. That came on the heels of the Caltagirone brothers’ Calta Group scoring a $53.7 million construction loan for 251 apartments in two Hollywood projects, at 2750 Van Buren Street, and at 2217-2239 Jackson Street.
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