The Real Deal Miami

West Palm Beach apartment complex sells for $20M

Owner put $1.45M into upgrades for community

July 29, 2015 11:15AM
By Sean Stewart-Muniz

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The CityView apartment community in West Palm Beach

The CityView apartment community in West Palm Beach

Two years after Harbor Group International purchased and renovated the CityView apartments in West Palm Beach, the company has sold the community for $20 million.

Harbor, based in Virginia, is a commercial real estate investment company. The group paid $12.8 million to acquire CityView two years ago as part of bulk purchase of multi-family communities.

The previous ownership was in the midst of a $1.5 million renovation program when the community sold. Harbor picked up the bill for the remaining work.

The community’s most recent sale has not yet been recorded in county records, so the buyer is unknown.

CityView houses 26 two-story rental buildings, which are currently 96 percent leased, according to a news release about the sale. Its amenities include two outdoor pools, a fitness center and a laundry facility.

“HGI has a strong track record of building value at a property through significant capital improvement programs and CityView is an excellent example of our successful investment thesis,” said HGI President T. Richard Litton, Jr., in a statement. “HGI completed a large-scale improvement program that was started by the previous ownership and we were able to bring about positive rent growth, creating value for our investors. CityView also validates HGI’s strategy to invest in the South Florida apartment market, which continues to benefit from strong occupancies and rent growth.”

Apartment communities in Palm Beach County have been hot commodities this year: another West Palm complex sold for $21 million in April, and an Atlanta-based company paid a whopping $112 million to purchase the Resort at Laguna Lakes in March.