Hyperion Group has secured a $108 million construction loan and an equity partnership with Silverstein Properties for its long-delayed apartment project in Boynton Beach. The Miami-based developer, along with New York-based Winter Properties, plans to build the eight-story, 371-unit luxury Ocean One building at 114-222 North Federal Highway. Madison Realty Capital is providing the construction financing.
The deal comes as South Florida’s multifamily market faces challenges from an oversupply of new apartments after several years of high development activity and slower population growth. This has led to slower lease-ups, increased concessions, and a decrease in average rents across the region.
Adam Doneger was part of the Newmark team that represented Hyperion and Winter in the equity transaction, while Jordan Roeschlaub represented the borrowers in securing financing. Silverstein Properties is led by Larry and Lisa Silverstein.
The recent financial agreements follow Hyperion and Winter’s success in obtaining additional local government incentives for Ocean One. In January, the Boynton Beach Community Redevelopment Agency increased its tax increment financing allocation for the project to $11.5 million from $9 million. According to reports, this is the largest TIF allocation ever made by the agency. Despite this increase, Hyperion had requested a $16 million subsidy due to higher construction costs, insurance expenses, ongoing inflation, elevated interest rates, and tariff-related uncertainties.
Rob Vecsler leads Hyperion Group and David Winter heads Winter Properties. The developers have been working on Ocean One since at least 2023; completion was originally scheduled for early this year. They purchased the 3.7-acre site for $12 million in 2021 and received approval for development in 2023.
Developers throughout South Florida continue to pursue new multifamily projects despite current market headwinds. During the pandemic-era boom, a record 18,600 units were completed in Miami-Dade, Broward, and Palm Beach counties in 2024 according to CoStar data. Even last year amid supply concerns, another 12,718 units were finished based on CoStar figures.
Although many buildings are now offering one or two months of free rent or other incentives to attract tenants, developers starting new projects believe demand will return by their completion dates. Some expect another wave of migration driven by political changes elsewhere in the country.
Construction lending remains active despite higher interest rates. Last month saw Clara Homes secure $80 million for its third luxury apartment building in Bay Harbor Islands with 77 units; Development Alliance obtained a $43.3 million loan for Nexus Leah—a planned eight-story building with 189 units—in Hialeah; while Ascentris and Zom Living are moving forward with a Live Local Act redevelopment involving a Doral office property into a 380-unit residential project backed by a $92.3 million loan.
