Starwood pays $24M for rental community near Boynton

The Worthington Apartments in Palm Beach County
The Worthington Apartments in Palm Beach County

An affiliate of the Starwood Property Trust just paid more than $24 million for an apartment community on the northern outskirts of Boynton Beach.

The deal includes Worthington Apartments, a 300-unit community that was built in 1996. It’s located at 6274 Pinestead Drive, which sits in unincorporated territory between the cities of Boynton Beach and Lake Worth.

SPT WAH Worthington, a limited liability company that shares an address with Starwood, purchased the property through a deed filed last week. The total price was $24,389,631, which breaks down to about $81,299 per apartment.

Starwood financed its acquisition with a $17.34 million loan from Holliday Fenoglio Fowler, a mortgage banking firm.

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The seller was the Wilson Company, a Tampa-based builder and owner of affordable housing communities throughout the state.

Records show the company paid $2.8 million for the nearly 28 acres where it built Worthington in 1995. The gated community is made up of 18 low-rise residential buildings that surround a lake. Its amenities include a clubhouse with a pool, children’s playground and a beach volleyball court.

The Starwood Property Trust is primarily a publicly traded financial company that invests in commercial mortgages. Two years ago, the firm bought out LNR Partners, the country’s largest special servicer of commercial mortgages.

This year, the trust also started purchasing properties like the Worthington Apartments as another form of investment. According to its website, Starwood looks for stable properties that generate cash flow and have the potential to appreciate in value.