West Shore, a Boston-based real estate investment firm, has acquired the Palm Beach Gardens Apartments, a 542-unit complex in Palm Beach Gardens, for $117.9 million. The purchase is part of a broader trend of increased multifamily property sales in South Florida.
The transaction involved Advenir, an Aventura-based developer and investor, as the seller. According to records and data from Vizzda, West Shore financed the acquisition with a $550 million loan from Citybank. This loan is cross-collateralized with other properties in Pinellas County and out-of-state locations, with the Florida assets accounting for about 25 percent of the collateral. The financing will mature in 2030.
Palm Beach Gardens Apartments was completed in 1970 and 1971 and consists of 34 two-story rental buildings on a 21.5-acre site. Amenities include a storage building and clubhouse. Units range from one to three bedrooms, with monthly rents starting at $1,842 and reaching over $2,855.
Advenir previously purchased the complex for $97.3 million in 2018 and secured an $80 million loan that year to renovate it. Since its founding in 1996, Advenir has owned or managed more than 30,000 units and currently holds a portfolio valued at $2.9 billion.
West Shore manages more than 18,500 units across 54 properties valued above $4.5 billion and is led by Lee E. Rosenthal.
South Florida’s multifamily sector has faced challenges due to recent high levels of new construction. Data from CoStar Group indicates that last year saw completion of approximately 18,600 apartments while only about 15,000 net new leases were signed across the tri-county area. This supply surplus resulted in slower lease-ups, increased concessions for renters, and slight decreases in average asking rents.
Despite these market conditions and higher interest rates persisting this year, multifamily investment sales have been increasing recently as investors pursue value-add opportunities or utilize alternative financing options such as Freddie Mac or Fannie Mae loans or insurance company debt.
Other notable transactions last month include Morgan Properties’ purchase of Visions at Willow Pond near West Palm Beach for nearly $70 million; Tishman Speyer’s acquisition of Bell at Broken Sound Apartments in Boca Raton for $124.5 million; and TA Realty’s buyout of San Merano at Mirasol Apartments in Palm Beach Gardens for $193 million.
