Ohio multifamily fund pays $13.5M for waterfront Boca apartments

A facelift could be in the future for the Boca Manor Apartments in Boca Raton, following the building’s $13.5 million purchase by an Ohio-based multifamily fund.

Palm Beach County records show an affiliate of the Klingbeil Multifamily Fund XI, sponsored by Klingbeil Capital Management, just acquired the 85-unit apartment building at 2500 Federal Highway.

The fund took out a $10.75 million mortgage from PNC Bank to fund its deal, and according to the loan documents, there’s a “renovation loan agreement” attached to the money. The specifics of that clause were not included, however.

Robert Gordon, a Boca Raton real estate investor, was the seller. He’s owned Boca Manor since the early 1970s, only a few years after the complex was built in 1969. It’s unknown how much he originally paid, but Gordon has now raked in roughly $158,823 per door.

Investor demand for South Florida rental properties has been heating up this year, with $4 billion worth of multifamily trades in the first half of 2016 alone.

This also marks another big acquisition for Klingbeil in the region: in December, the company picked up a newly built apartment community in Jupiter for $65 million, or about $213,815 per unit.