Cottonwood Residential buys Luma West Palm apartments

South Florida developer Charles Scardina Jr. sold the 245-unit development

Luma West Palm Apartments
Luma West Palm Apartments

UPDATED, July 16, 11:06 a.m.: South Florida developer Charles Scardina Jr. sold a new apartment complex to a Salt Lake City firm for nearly $67 million.

Scardina’s Luma at West Palm Beach LLC sold Luma West Palm Apartments at 7130 Okeechobee Boulevard to CC West Palm Beach LLC, which is tied to Cottonwood Residential.

The deal breaks down to about $273,000 per apartment. Luma was built on a 10.2-acre site west of the Florida Turnpike in 2018. Florida Community Bank provided the $35.6 million construction loan for the project.

Chris Conklin of Walker & Dunlop represented the seller.

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Cottonwood Communities, a real estate investment trust, announced the deal was under contract in April. The development includes a heated pool with cabanas, fitness center, 5,500-square-foot clubroom, business center and dog park. The units range from one- to three-bedrooms averaging 1,122 square feet.

In August, Cottonwood launched a $750 million offering to invest in multifamily properties throughout the U.S., according to a release. As of February, it has raised $9.4 million in investor equity.

The REIT cited strong employment in West Palm Beach as part of its decision to acquire Luma. Major employers in the area include Florida Power & Light, the Scripps and Max Planck Research Institutes, and United Technologies.

Related Group’s chairman and CEO Jorge Pérez recently said he plans to use the Opportunity Zones tax break to build market-rate apartments in West Palm Beach.