West Shore, a real estate investment and management firm based in Boston, has acquired the Palm Beach Gardens Apartments, a 542-unit complex in Palm Beach Gardens, Florida, for $117.9 million. The purchase reflects a growing trend of multifamily property transactions in South Florida.
According to public records and data from Vizzda, West Shore purchased the property at 4120 Union Square Boulevard from Advenir, an Aventura-based developer and investor led by David Vecchitto. The transaction was financed through a $550 million loan from Citybank that is cross-collateralized with other properties in Pinellas County and out-of-state locations. The Florida assets make up 25.3 percent of the collateral for this loan, which matures in 2030.
The Palm Beach Gardens Apartments were built in 1970 and 1971 and consist of 34 two-story residential buildings along with a storage facility and clubhouse on a 21.5-acre site. The apartments range from one-bedroom to three-bedroom units, with monthly rents listed between $1,842 and over $2,855.
Advenir originally bought the complex for $97.3 million in 2018 and secured an $80 million loan at that time to renovate the property. Since its founding in 1996, Advenir has owned and managed more than 30,000 units nationwide and currently holds a portfolio valued at $2.9 billion.
West Shore’s current holdings include more than 18,500 apartment units across 54 properties valued above $4.5 billion. The company is led by Lee E. Rosenthal.
South Florida’s multifamily housing market has seen an increase in available units due to significant new construction activity over recent years. Data from CoStar Group shows that last year saw the completion of a record-setting 18,600 apartments while only about 15,000 net new leases were signed during the same period—resulting in slower lease-ups, increased concessions for tenants, and a slight decrease in average asking rents throughout the region.
Despite elevated interest rates making financing more challenging for some buyers, investment sales activity has picked up recently as investors seek value-add opportunities or turn to alternative financing options such as loans from Freddie Mac or Fannie Mae, insurance companies’ debt products, or by assuming sellers’ existing loans.
Recent notable transactions include Morgan Properties’ acquisition of Visions at Willow Pond near West Palm Beach for nearly $70 million; Tishman Speyer’s purchase 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.
