California firm pays $59M for West Palm Beach apartment portfolio
Deal is for three market-rate communities totaling 309 units
Riverside, California-based Kingdom Development’s affiliate NeuRock Capital bought three West Palm Beach multifamily complexes for $59.3 million.
NeuRock purchased Sunset Place at 1001 36th Street, Lancaster Apartments at 1210 Palm Beach Lakes Boulevard and The Charmer at 345 30th Street, according to a news release.
All of the selling entities are managed by Shloime Rosenberg of Lakewood, New Jersey, records show.
Tal Frydman and Hampton Beebe of Newmark Multifamily Capital Markets handled both sides of the deal.
The sale of the 309-unit portfolio, which included three deeds, breaks down to $191,748 per unit.
The 192-unit Sunset Place in the Northwood Hills neighborhood sold for $35.5 million, according to a deed. The apartments were built in 1970 on 10.5 acres, property records show. The complex last traded for $23.2 million in 2019.
The two-story, multi-building complex offers one-bedroom to three-bedroom apartments, according to the release.
In the second biggest purchase, the 78-unit Lancaster sold for $15.5 million, according to a deed. Constructed in 1968 on nearly 3 acres, Lancaster last traded for $10.5 million in 2020, property records show.
The two-story garden-style property offers two-bedroom units, the release states.
The smallest sale was the $8.3 million trade of The Charmer, the deed shows. The 39-unit property is two-stories with one-story villas. It offers studios as well as one- and two-bedroom apartments, according to the release.
Property records show the buildings were constructed in 1939 and 1957 on 0.8 acres. The Charmer last traded in 2019 for $6.1 million.
Kingdom Development, based in Riverside, California, is a nonprofit that focuses on affordable housing as both an owner and developer, a developer’s consultant and as an adviser to the industry, according to its website. William Leach founded Kingdom in 2015 and by the following year, the nonprofit had 436 units planned and 164 units in the financing stage.
Yet, the West Palm Beach portfolio NeuRock just acquired is all market-rate units.
Rents at the Lancaster range from $1,000 to $1,300 a month, according to Rent.com. The Charmer’s monthly rents range from $1,250 to $1,525, and Sunset Place from $1,000 to $1,450, according to Apartments.com.
Investor appetite for multifamily projects has been strong, in light of the robust market fueled by high demand and rising rents.
In another recent West Palm apartment portfolio deal, Morgan Properties bought three communities totaling 622 units in October from Northland Investment for $132.5 million.