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

Deal breaks down to about $347,000 per apartment

Miami /
Jul.July 26, 2017 01:30 PM

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.


Related Articles

arrow_forward_ios
12350 Biscayne Boulevard and buyer Yoram Izhak (Google Maps)
Johnson & Wales sells more North Miami properties for $21M
Johnson & Wales sells more North Miami properties for $21M
The Buena Vista Gardens in Little Haiti (Apartments.com)
Bowery Properties buys Little Haiti apartment portfolio for $12M
Bowery Properties buys Little Haiti apartment portfolio for $12M
David Grutman and Pharrell’s Goodtime Hotel had received nearly 30 noise violations (Carma Connected, Getty)
Too much of a good time? David Grutman and Pharrell’s Goodtime Hotel could lose entertainment permit
Too much of a good time? David Grutman and Pharrell’s Goodtime Hotel could lose entertainment permit
Related Companies Chairman Stephen Ross with One Flagler (Related, Getty)
Prayers answered? Related Companies closes on church site for planned office tower in downtown West Palm
Prayers answered? Related Companies closes on church site for planned office tower in downtown West Palm
Grover Corlew principal Mark Corlew with Bank of America Tower in Boca Raton (Grover Corlew)
Grover Corlew buys Bank of America Tower in Boca Raton for $45M
Grover Corlew buys Bank of America Tower in Boca Raton for $45M
Walton Street Capital Managing Partner Eric Mogentale with the complex (Alta Developers, Walton Street Capital)
Walton Street Capital buys Boynton Beach apartments for $93M
Walton Street Capital buys Boynton Beach apartments for $93M
The partially collapsed 12-story Champlain Towers South condo building (Getty)
Inside the tug-of-war over the Surfside condo site’s future
Inside the tug-of-war over the Surfside condo site’s future
Avery Pompano Beach apartments with Yaakov Frankforter of Frankforter Group (LinkedIn via Frankforter, Avery Pompano Beach)
Frankforter Group buys Pompano Beach apartments for $43M
Frankforter Group buys Pompano Beach apartments for $43M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...