Griffis Residential acquired a West Palm Beach apartment complex for $78.5 million as part of its new multifamily fund, according to a March 13 announcement.
The purchase comes at a time when the South Florida rental market is facing challenges, including slow rent growth and an oversupply of units. Despite these conditions, Griffis is moving forward with investments in properties that have potential for improvement.
The eight-story building at 805 North Olive Avenue was sold by Castle Lanterra, led by Elie Rieder. The property includes 263 units and was rebranded from Loftin Place to Griffis North Olive. Griffis financed the acquisition with a $56.7 million loan from Northmarq Capital that matures in 2036. The sale price amounts to nearly $300,000 per unit. The building was completed in 2015 and previously sold for $63.5 million in 2017.
This deal is part of Griffis’ recently launched Premium Apartment Fund VII, which aims to invest $550 million in multifamily properties across the country. According to the company, its portfolio now covers nearly 10,000 units in 31 communities across 13 markets nationwide.
Griffis has been active in South Florida’s multifamily sector this year, purchasing a 144-unit building in Pompano Beach for $41 million and another property in downtown West Palm Beach for $87 million.
The West Palm Beach area has seen significant investment activity recently, partly due to major projects led by billionaire Steve Ross through his firm Related Ross. However, the broader South Florida apartment market remains soft after developers delivered a record number of new units last year while domestic migration slowed. This has resulted in longer lease-up periods and more concessions offered by landlords.
In January, average asking rents for South Florida apartments dropped by four percent compared to the previous year, reaching just over $2,200 per month according to Realtor.com data cited in the release.
Despite these trends, some large transactions continue to occur. Recent deals include Dermot Company’s purchase of Quaye at Palm Beach Gardens for $131.8 million and IMC Equity Group’s acquisition of Pine Groves in Princeton at a discounted price compared to four years ago.
Palm Beach County’s total multifamily investment sales volume reached $1.9 billion last year—higher than volumes recorded in both 2024 and 2023 but below the peak seen in 2021.
