New York-based Castle Lanterra Properties just paid $63.5 million for the 259-unit Loftin Place apartment community in West Palm Beach, marking its first acquisition in Florida.
The mid-rise, eight-story building at 805 North Olive Avenue was developed by Cypress Real Estate Advisors, a Texas-based real estate investment and development company. Cypress paid $13 million to acquire the site in 2006.
A spokesperson for CLP said the building is 92 percent leased. Elie Rieder, CLP founder and CEO said CLP took on $40 million in debt from Freddie Mac.
The multifamily development offers studio, one-, and two-bedroom units that range from 578 square feet to 1,037 square feet, with rents ranging between $1,581 to $2,169, according to Apartments.com.
Units come with high ceilings, quartz countertops, wood flooring, stainless steel appliances and private patios and balconies. Residents have access to a fitness center, conference room, pool, rooftop running track, tennis courts and grilling stations.
“There’s been a five-year shift in the market where there’s more millennials looking to move to downtown,” CLP’s head of investments Ben Loney said. “That coupled with the train [Brightline], it’s a strong demand driver for that area and we see that continuing in the near and extended future.”
Avery Klann and Hampton Beebe of ARA Newmark represented the seller. David Layman of Greenberg Traurig and Mitch Clarfield of Berkeley Point Capital represented CLP, according to a press release.
CLP owns and manages a portfolio of 8,900 units with a value in excess of $1.5 billion. Rieder said CLP is looking to get more active in the South Florida and Orlando markets.
Real estate prices in West Palm Beach’s downtown are rising along with rent costs. A 73-acre, mixed-use development called Water Tower Commons is being built on Lantana Road. Although construction on the development has lagged, the developer has approval to build more than 300,000 square feet of commercial space for offices, retail stores and restaurants.