West Shore bought a 542-unit apartment complex in Palm Beach Gardens for $117.9 million, marking a continuing uptick of multifamily investment sales in South Florida.
Boston-based West Shore bought the Palm Beach Gardens Apartments at 4120 Union Square Boulevard from Aventura-based Advenir, according to records and real estate database Vizzda. The buyer borrowed a $550 million loan that is cross-collateralized across this complex, a property in Pinellas County and out-of-state properties, with the Florida properties representing 25.3 percent of the collateral. Citybank is the lender of the financing, which matures in 2030.
Completed in 1970 and 1971, Palm Beach Gardens Apartments consists of 34 two-story rental buildings, a storage building and a clubhouse, Vizzda records show. The complex is on 21.5 acres.
Palm Beach Gardens Apartments offers one-bedroom to three-bedroom apartments, with monthly rents ranging from $1,842 to over $2,855, according to its website.
Led by David Vecchitto, Advenir bought the complex for $97.3 million in 2018, scoring an $80 million loan that year to renovate the property, records show.
Advenir is a developer, investor and manager of multifamily properties and single-family rental homes, according to its website. It has owned and managed more than 30,000 units since it was founded in 1996 and currently has a $2.9 billion portfolio.
West Shore is a multifamily investment and management firm with a portfolio of more than 18,500 units across 54 properties valued at over $4.5 billion, its website shows. It’s led by Lee E. Rosenthal.
South Florida’s multifamily market has experienced a supply overhang following a construction flurry in recent years. Last year, a record 18,600 apartments were completed, outpacing 15,000 net new leases, CoStar Group data shows. This led to slower lease-ups, more concessions and a slight decline in the average asking rent in the tri-county region.
Developers continue building, arguing that demand and rent growth will be restored by the time they finish their projects.
Multifamily investment sales have been ticking up in recent months, despite still higher interest rates. Many of the buyers are value-add investors or are circumventing the harder financing climate by using Freddie Mac or Fannie Mae loans, or debt from insurers. Others are assuming sellers’ loans, relying on discretionary funds or paying all cash.
Last month, Morgan Properties paid $69.95 million for the 300-unit Visions at Willow Pond complex at 4860 Sand Stone Lane near West Palm Beach, and Tishman Speyer paid $124.5 million for the 270-unit Bell at Broken Sound Apartments at 5500 Broken Sound Boulevard Northwest and 950 Northwest Broken Sound Parkway in Boca Raton.
Also, TA Realty bought the 476-unit San Merano at Mirasol Apartments at 100 Portofino Drive in Palm Beach Gardens for $193 million last month.
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