Related Fund Management bought a 292-unit apartment complex in Delray Beach for $116.9 million.
The deal comes amid an uptick in multifamily investment sales in South Florida, despite elevated interest rates and other economic headwinds.
Related Fund Management bought Aura Delray Beach at 2095 West Atlantic Avenue, paying nearly $400,200 per unit, according to records. It secured a $59.1 million Freddie Mac loan, which matures in 2035, for the purchase.
The seller is Dallas-based Trinsic Residential Group, which completed development of Aura in 2023. The complex consists of six buildings on a 12-acre site. It offers studios and one-bedroom to three-bedroom apartments, with monthly rents ranging from $2,385 to $4,085, Apartments.com shows.
In 2020, Trinsic scored approval from the Delray Beach commission to rezone the site, allowing for Aura’s development.
Trinsic, led by Brian Tusa, also is partnering with Hollywood-based Macken Companies to develop the eight-story, 373-unit Aura North Miami Beach with 17,000 square feet of ground-floor commercial space and a 9,000-square-foot covered terrace with retail space.
Related Fund Management is the investment management arm of New York-based Related Companies, which is led by Jeff Blau. Steve Ross founded Related Companies more than 50 years ago, before stepping back last year to start and lead West Palm Beach-based Related Ross, which focuses primarily on South Florida. Ross remains Related Companies’ biggest single shareholder and nonexecutive chairman.
South Florida multifamily sales have slowed over the past two years compared with the flurry during the pandemic. Aside from higher interest rates and insurance, as well as inflation, the influx of out-of-staters has slowed, decreasing demand and rent growth.
Many buyers still purchasing apartment buildings are turning to Freddie Mac and Fannie Mae loans, which generally have better terms than bank financing. Others are assuming sellers’ loans or purchasing with all cash.
Spanish billionaire Amancio Ortega’s Ponte Gadea paid $165 million for the 44-story, 259-unit Veneto Las Olas apartment tower at 201 South Federal Highway in downtown Fort Lauderdale. The June purchase was all cash.
Also, Property Reserve, which invests The Church of Jesus Christ of Latter-day Saints’ reserve funds into commercial real estate, paid $152.5 million for the 384-unit Del Ola apartment complex at 7801 North Federal Highway in Boca Raton. Property Reserve did not record a loan for the deal, which signals it was a cash deal.
This month, The Milestone Group bought the 206-unit Casa Brera at Toscana Isles at 4725 Via Bari in unincorporated Palm Beach County for $46.4 million, assuming the seller’s $27.4 million Fannie Mae loan.
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