West Shore, a Boston-based multifamily investment and management firm, has acquired the Palm Beach Gardens Apartments, a 542-unit complex in Palm Beach Gardens, Florida, for $117.9 million. The purchase reflects an ongoing increase in multifamily property transactions in South Florida.
The seller, Advenir of Aventura, previously bought the complex for $97.3 million in 2018 and secured an $80 million loan at that time to renovate the property. Advenir is led by David Vecchitto and manages a portfolio valued at $2.9 billion, with ownership and management experience spanning more than 30,000 units since its founding in 1996.
Palm Beach Gardens Apartments is located at 4120 Union Square Boulevard and consists of 34 two-story rental buildings as well as a storage building and clubhouse on a 21.5-acre site. The apartments range from one to three bedrooms with monthly rents between $1,842 and over $2,855.
West Shore financed the acquisition with part of a $550 million loan provided by Citybank that is cross-collateralized with properties in Pinellas County and other out-of-state locations; Florida properties make up about 25 percent of the collateral for this loan. The financing will mature in 2030.
According to its website, West Shore oversees more than 18,500 units across 54 properties valued above $4.5 billion under the leadership of Lee E. Rosenthal.
The broader South Florida multifamily market has recently faced excess supply due to significant new construction activity. Data from CoStar Group indicates that last year saw the completion of a record 18,600 apartments while net new leases reached only about 15,000 units in the tri-county area. This imbalance has resulted in slower lease-ups and increased concessions from landlords along with a slight decrease in average asking rents.
Despite higher interest rates making some financing options more difficult to obtain, multifamily investment sales have been rising as investors use alternative strategies such as Freddie Mac or Fannie Mae loans or debt from insurers. Some buyers are assuming sellers’ loans or paying all cash.
Recent transactions highlight continued activity: Morgan Properties purchased Visions at Willow Pond near West Palm Beach for nearly $70 million; Tishman Speyer acquired Bell at Broken Sound Apartments in Boca Raton for $124.5 million; and TA Realty bought San Merano at Mirasol Apartments in Palm Beach Gardens for $193 million.
Developers remain active despite current market conditions, anticipating that demand and rent growth will recover by project completion.
