Art Falcone’s firm sold a Flagler Village apartment tower for $108 million, amid a recent uptick in South Florida multifamily deals despite a regional oversupply of rentals.
An entity tied to Falcone’s Boca Raton-based firm sold the 30-story, 348-unit The Rise Flagler Village to an affiliate of New York-based Journey Capital, according to records and real estate database Vizzda. Falcone leads Falcone Group, Rescore Property and Encore Capital Management.
The sale breaks down to $310,000 per unit.
Journey, founded and led by Peter Calatozzo, financed the purchase with an $88.3 million Fannie Mae loan, maturing in 2031.
The Rise consists of studios and one-bedroom to three-bedroom apartments and was completed in 2021 on a 1.4-acre lot, according to records and the property’s website. It lists monthly rents ranging from $2,300 to $4,500.
Falcone’s entity paid $9.4 million for the development site in 2015, financing construction with a $57 million loan obtained in 2017, records show.
South Florida’s multifamily market has felt the sting of oversupply in the past year due to hefty completions –– a record 18,600 units delivered in 2024, CoStar Group data shows –– and a slower influx of out-of-staters, leading to slower lease-ups. The average monthly rent hit $2,235 in February, a 3.3 percent year-over-year decrease, according to Realtor.com.
Some landlords have resorted to concessions, including several months of free rent, though The Rise’s website lists no concessions.
Despite the softer market, several properties have traded this year. Maxx Properties paid $70 million for the 250-unit The Ellery complex in Plantation last month, and Griffis Residential paid $78.5 million for the 263-unit Griffis North Olive complex in West Palm Beach.
In February, Griffis also paid $41 million for an eight-story, 144-unit building in Pompano Beach, and Dermot Company paid $131.8 million for the 340-unit The Quaye at Palm Beach Gardens complex.
Journey is no stranger to South Florida multifamily. Last year, the firm paid $102 million for a 404-unit complex in Plantation.
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