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 amid ongoing challenges in the South Florida rental market.
The property, located at 805 North Olive Avenue, was sold by Castle Lanterra, led by Elie Rieder. The eight-story building has 263 units and was rebranded from Loftin Place to Griffis North Olive after the sale. Griffis financed the acquisition with a $56.7 million loan from Northmarq Capital that matures in 2036.
The sale price equates to nearly $300,000 per unit for the building, which consists of studios as well as one- and two-bedroom apartments. Completed in 2015 on a 2.5-acre site, the property last changed hands in 2017 for $63.5 million.
This acquisition is part of Griffis’ recently launched Griffis Premium Apartment Fund VII, which aims to invest $550 million in properties with value-add potential in markets showing strong economic indicators. According to a news release, Griffis’s portfolio now includes nearly 10,000 units across 31 communities in 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 downtown West Palm property for $87 million.
The broader South Florida apartment market remains soft following the completion of a record number of new units and slower domestic migration. In January, average asking rents dropped by four percent year-over-year to just over $2,200 per month. Despite these conditions, investment sales have continued sporadically throughout the region.
