Tishman Speyer bought a 270-unit apartment complex in Boca Raton for $124.5 million.
New York-based Tishman Speyer bought the Bell at Broken Sound Apartments at 5500 Broken Sound Boulevard Northwest and 950 Northwest Broken Sound Parkway from Greensboro, North Carolina-based Bell Partners, according to records and real estate database Vizzda. The purchase breaks down to $461,111 per apartment.
The buyer borrowed a $78.4 million Fannie Mae loan for the purchase. The loan matures in 2030.
Robert Given and Zach Sackley were part of the CBRE team that represented the seller.
Completed in 2018 and 2019, Bell at Broken Sound consists of 22 three-story apartment buildings and a pair of clubhouses on a 14.4-acre site, according to a Tishman Speyer news release and Vizzda records. It has one-bedroom to three-bedroom units, with monthly rents ranging from $2,279 to $4,390, the property’s website shows.
The units break down to 180 apartments and 90 townhouses, the release says.
Tishman Speyer plans amenity, technology and interior improvements, according to the release.
The complex is within The Park at Broken Sound, a 700-acre mixed-use development with offices, apartments and light industrial space.
Bell Partners, led by Lili F. Dunn, had paid $94.3 million for Bell at Broken Sound Apartments in 2020, records show.
Led by Rob Speyer, Tishman Speyer has been slowly beefing up its South Florida real estate investments over the past year. Last year, it paid $100.2 million for the two-warehouse Rock Lake Business Center at 3150-3250 Northwest 33rd Street in Pompano Beach, marking its first known industrial investment in Florida. It was the fifth biggest industrial deal last year in South Florida.
Founded in 1978 by Jerry Speyer and the late Robert Tishman, Tishman Speyer has purchased and developed about 34,000 apartments and condos in the U.S., Brazil, China and Europe, the release says.
South Florida’s multifamily market is experiencing an uptick in investment sales in recent months after a calming over the past two years due to elevated interest rates and a slowdown of the influx of out-of-staters. During the pandemic, the tri-county region’s market was supercharged by unprecedented demand from newcomers and record rent growth.
In Palm Beach County, multifamily investment sales totaled $3.9 billion in 2021 and $1.8 billion in 2022, according to data provided by Avison Young. Activity dropped to $668 million in 2023 and $1 billion last year. Palm Beach County investment sales totaled $120 million during the first half of this year, the Avison data shows.
Buyers still purchasing apartments generally are relying on discretionary funds that have to deploy their capital, or are borrowing Freddie Mac and Fannie Mae loans, or obtaining loans from insurers, which usually have better terms than bank financing. Some are all-cash buyers, such as Spain’s richest person, Amancio Ortega, who paid $165 million in June for the 259-unit Veneto Las Olas apartment tower at 201 South Federal Highway in downtown Fort Lauderdale.
Last month, Legacy Residential Group paid $77 million for the 416-unit Legacy at Coconut Creek complex at 4303 West Atlantic Boulevard in Coconut Creek. This month, AEW Capital Management and Mast Capital sold the 342-unit Remi on the River building at 999 Northwest Seventh Street in Miami for $108.4 million. Buyer Valeris Capital borrowed $72.3 million from The Northwestern Mutual Life Insurance Company.
