An investment group including the Delray Beach Housing Authority just bought an aging senior living complex in the city for $35 million.
The deal breaks down to about $86,633 per door for the 404-unit community, which is located at 600 Lindell Boulevard near the South Delray Shopping Center. County records show the sellers are Chicago investors Daniel Epstein and Henry Hyatt.
Now that the sale has closed, the housing authority and its partner for this project, Smith & Henzy Advisory Group, have begun a $15 million renovation of the complex. The project is expected to take about three years to complete, county documents show.
According to Smith & Henzy’s website, the group is working with an institutional investor to rehabilitate the community, which was built in 1970. Data from the CoStar Group shows the complex is nearly full with a 98 percent occupancy rate. Rents for the units are controlled by a land-use agreement, so the average monthly payment per apartment is roughly $810.
The rehab is being funded by a $35.8 million tax-exempt loan from Freddie Mac that was issued by the city’s housing authority. Smith & Henzy called it the largest bond issuance for a tax-exempt property in Palm Beach County’s history.