Related Cos. completes $65M purchase of West Palm affordable senior housing
All tenants of 330 units receive housing assistance
Stephen Ross’ The Related Companies completed its acquisition of two affordable senior housing apartment buildings in West Palm Beach.
Affiliates of Related’s affordable housing division paid a combined $65 million for Saint Andrews Residence, a 182-unit building at 208 Fern Street, and Saint James Residence, a 148-unit building at 400 South Olive Avenue, records show. The Episcopal Diocese of Southeast Florida sold the two properties, which have views of the Intracoastal Waterway and the Palm Beach skyline.
The deal has been in the works since at least February, when the Diocese’s board announced it had signed contracts with Related Affordable at a meeting with residents of both buildings, according to previous news reports. The transactions required approvals from the U.S. Housing and Urban Development because all Saint Andrews and Saint James tenants receive subsidized housing assistance.
Related sought an affordability extension for 20 years for both properties and submitted a preservation plan to HUD “seeking an additional level of affordability” for Saint Andrews residents that includes rent security and a rental subsidy that protects tenants from future rent increases.
Records show the Diocese bought the Saint James property in 1979 for $312,000 and the building was completed in 1981. Related paid $40 million. The Diocese acquired the Saint Andrews site for $3.2 million in 2009 and sold it to Related for $25 million.
Related is bullish in West Palm Beach, spending nearly $500 million to acquire office buildings in the city since January. The firm bought the Phillips Point office towers for $281.9 million, making it the largest office sale in South Florida in more than one year.
In May, the New York-based firm paid $175 million for the 18-story CityPlace Tower at 525 Okeechobee Boulevard and a month later acquired half of the ownership interest in the 20-story Esperanté Corporate Center at 222 Lakeview Avenue.
In July, Related closed on a development site at 134 and 142 Lakeview Avenue and 809 South Flagler Drive for $20.1 million. The property is zoned for a 25-story office tower.