Private equity firm pays $15M for Delray Beach apartments

An entity tied to a private equity firm paid $14.75 million for the Residences at Latitude Delray Beach, with plans to convert the apartment complex to annual rentals.

PDE Latitude Delray LLC, managed by Marlena Demenus, the managing partner of New York-based Sky Lake Partners, bought the 42-unit multifamily property at 225 and 3130 South Latitude Circle.

Currently, half of the units are rented out as furnished vacation rentals, but Demenus plans to convert them to annual rentals, according to Brad Kuskin of Keller Williams Commercial Real Estate, who represented the buyer, along with Katie Rawnsley, also of Keller Williams Commercial Real Estate.

Newmark Knight Frank’s Avery Klann, Hampton Beebe, Tyler Minix and Jonathan Senn represented the seller, JKM Developers.

Built in 2017, the Residences at Latitude Delray Beach features units with one bedroom to three bedrooms plus a den, with monthly rents ranging from $1,900 to $3,300, Kuskin said. Amenities include a pool and cabana, basketball court and putting green.

JKM Developers paid $1.65 million for the site in 2014, and spent $8.65 million in construction costs, Kuskin said.

JKM Developers remains active in South Florida. Last year, the firm scored a $28 million construction loan for its planned Tamarac Village, a mixed-use project in Tamarac.

Sky Lake Group is a private equity firm specializing in multifamily and mixed-use real estate investments, according to Demenus’ LinkedIn page. Sky Lake recently sold nine buildings in New York City and is reallocating more than $40 million into South and Central Florida, Kuskin said. This deal is the first to close in South Florida.