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Tampa firm sells Palm Beach Gardens apartment complex to PGIM for $118M

Deal breaks down to about $347,000 per apartment
By Amanda Rabines | July 26, 2017 01:30PM

The Quaye at Palm Beach Gardens Inset: David Hunt CEO of PGIM

A company tied to Tampa-based Carlyle Investments just sold a 340-unit apartment complex in Palm Beach Gardens for $118 million to PGIM Real Estate, property records show.

South Gardens LLC, managed by developer Charles B. Funk, sold the Quaye at Palm Beach Gardens, at 10000 South Gardens Drive, to PGIM. The deal breaks down to about $347,000 per unit.

The 34-acre development was completed in 2015. Property records show the developer financed construction with a $47.6 million mortgage from Columbus, Georgia-based Synovus bank.

Monthly rents at the complex range from $1,666 for a one-bedroom apartment to $2,567 for a three-bedroom unit. Amenities include 9 acres of nature trails and a 10,000-square-foot clubhouse with a fitness center, playground, community pool and basketball court. Apartments come with a washer and dryer, high-vaulted ceilings and waterfront pond views, according to Apartments.com.

Carlyle Investments sold the complex at a time when the supply of new multifamily inventory is outpacing demand. This year alone, nearly 13,500 new apartments will be delivered in South Florida, marking the fifth most active city in the country for multifamily construction, according to a report from RentCafe.

And rent growth is predicted to slow as the region’s occupancy rate dips. South Florida’s occupancy rate averaged 94.8 percent, down slightly from the previous quarter, according to Berkadia’s second quarter report.

But institutional investors are back to trading large apartment complexes after a slow period in the market. Recent deals include the $82 million sale of a luxury complex in Miramar, which AMLI sold to Eaton Vance Management, and the $49 million sale of a Boynton Beach rental community, which Robbins Electra sold to TruAmerica Multifamily.

PGIM is also no stranger to South Florida. The New Jersey-based real estate investment firm paid $49 million for a Trader Joe’s-anchored retail property in Fort Lauderdale last month. It’s also an equity partner in a 394-unit apartment building at Related Group and Shoma Group’s CityPlace Doral.