The Real Deal Miami

Joint venture buys West Palm apartments for $36.4M

Covenant Capital Group paid $20.4M for the community in 2012

August 15, 2016 11:15AM
By Katherine Kallergis

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Vieras of the Palm Beaches and Tal Frydman

Vieras of the Palm Beaches and broker Tal Frydman

Updated, 2:30 p.m., Aug. 15: South Florida’s multifamily market is continuing to see a number of large apartment sales.

The Viera of the Palm Beaches, a 300-unit complex in West Palm Beach, sold for $36.4 million to a partnership between San Francisco and New York firms, broker Tal Frydman told The Real Deal. The deal breaks down to about $121,000 per apartment.

The property, at 4860 Sand Stone Lane, was built in 1987 and is currently 93 percent occupied, according to a press release. Records show the seller is Palm Beach Multifamily Partners LLC, an affiliate of Nashville-based Covenant Capital Group.

Covenant, one of the largest real estate fund managers in the country, paid $20.4 million for the 14.3-acre complex in 2012.

“Over the past four years, the property has received a significant amount of rehabilitation and upgrades, and the buyer plans to continue the renovations through to completion,” Frydman said in the release.

The buyer, AGM Viera LLC, assumed Covenant’s loan.

Frydman, a Berkadia senior director, along with directors Yoav Yuhjtman and Fernando Polanco of the brokerage’s Boca Raton office, worked with Cole Whitaker, managing director of Berkadia’s Orlando office, to broker the deal. Berkadia is a joint venture between Berkshire Hathaway and Leucadia National Corporation.

The Viera of the Palm Beaches includes one- and- two-bedroom apartments with balconies, patios, washers and dryers, stainless steel appliances and wood laminate floors. The property has a clubhouse, gym, business center, swimming pool, tennis courts and trails.

The seller has more than $1.2 billion of assets under management on behalf of more than 300 institutional and high-net-worth investors, according to its website.

More than $4 billion of multifamily properties have sold in South Florida from January to June, with an emphasis on the suburban parts of Fort Lauderdale, West Palm Beach and Miami. Since the beginning of the month, a Broward complex sold last week for $44 million, a West Miami property in early August for $57 million, and a Tamarac community for $33 million – to name a few.