Pantzer pays $78M for West Palm Beach apartment complex
New York firm paid $438K per unit
With its recent purchase of a Palm Beach County apartment complex, Pantzer Properties has dropped $145 million — in a one-month span — on two recently completed multifamily projects.
An entity managed by Jordan and Jason Pantzer, co-CEOs of the New York-based multifamily investment firm, paid $78 million for The District Flats, a 178-unit apartment complex at 1701 Clare Avenue in West Palm Beach, records show. The buyer obtained a $50.7 million mortgage from Truist Bank.
The seller, Palm Beach Gardens-based multifamily developer Eastwind Development, paid $5.1 million for two properties and combined them into a 3.1-acre site in 2019, records show. Eastwind completed The District Flats last year. The173,543-square-foot complex also has 2,700 square feet of retail space.
In late April, Eastwind and its partner, Prague, Czech Republic-based ICP, also sold Pantzer a recently completed apartment complex in Palm Beach Gardens. Pantzer paid $66.5 million for the 136-unit Solera at City Centre Apartments.
Pantzer is bullish on Palm Beach County. In May of last year, the firm paid $119.4 million for the 392-unit Town Southern apartment complex in Royal Palm Beach and renamed the property The Point at Wellington. With the acquisition of The District Flats, Pantzer now owns 706 apartments in Palm Beach County. The firm’s portfolio consists of 37 multifamily projects with more than 10,000 units along the East Coast, according to Pantzer’s website.
Tenant demand remains high in South Florida, fueling skyrocketing rents, which in turn continues to attract national investors to the tri-county region, according to a first quarter report by Franklin Street. Yet, fewer new projects broke ground in the most recent quarter, compared to the fourth quarter of last year, and rising interest rates could slow down deals in upcoming quarters, Franklin Street found.
Recently, a partnership between Starwood Capital, Hyperion Group and Winter Properties scored a $96.4 million construction loan for a 457-unit multifamily project the joint venture is developing in West Palm Beach.
In Fort Lauderdale, New York-based Naftali Group recently bought a development site in Flagler Village for $20 million where the firm plans to build a multifamily project. And in Miami, Shoma Group paid $34 million for an auto dealership the firm plans to redevelop into a pair of apartment towers.