Related pays $48M for affordable senior housing complex in Boynton Beach

Deal equates to $200K per unit

Related’s Jon Paul Pérez and Jorge Pérez with 1785 Northeast Fourth Street (Related Group, Google Maps)
Related’s Jon Paul Pérez and Jorge Pérez with 1785 Northeast Fourth Street (Related Group, Google Maps)

Related Group paid $48 million for a Boynton Beach apartment complex that is restricted to low-income senior residents.

The Coconut Grove-based real estate company bought the Boynton Bay community on the southwest corner of Northeast Fourth Street and Northeast 20th Avenue from an affiliate of Delray Beach-based affordable senior housing developer Auburn Communities, according to records. The address is 1785 Northeast Fourth Street, although Boynton Bay also is listed under 499 Boynton Bay Circle.

KeyBank provided a mortgage to the buyer in the same amount as the purchase price, records show. Related Group also signed an agreement with the Florida Housing Finance Corporation, a state legislature-created authority that in part oversees various affordable housing financing options.

The 240-unit Boynton Bay is a garden-style complex constructed in 1991 with a pool on 21.4 acres, according to property records. It last traded in 2009 for $21.1 million.

The latest sale breaks down to $200,000 per apartment.

Boynton Bay offers one-bedroom apartments starting at $1,005 a month; two-bedroom apartments starting at $1,211 a month; and three-bedroom units starting at $1,400 a month, its website shows.

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Related Group, led by Jorge Pérez and Jon Paul Pérez, is one of South Florida’s most prolific developers. The firm’s Related Urban Development Group focuses on building affordable housing.

In November, Related Group paid $7.8 million for a 10-acre mixed-income multifamily development site on the west side of Southwest 127th Avenue and less than a quarter mile north of 248th Street in south Miami-Dade County’s Princeton neighborhood.

Boynton Beach is seeing some new multifamily development, as well, including communities with below-market rate units.

Affiliated Development, based in Fort Lauderdale, received final city approval this month for the eight-story The Pierce at 115 North Federal Highway in Boynton Beach. Half of the 236 units will be workforce housing, which will target mid-income households that earn too much to qualify for affordable housing.

The inclusion of affordable or workforce apartments in new projects comes as South Florida is faced with skyrocketing rents created by high demand.

In recent months, several existing multifamily properties that include below-market rate units have also traded. Early this year, Blackstone Real Estate Income Trust purchased 42 South Florida affordable housing properties from The Cornerstone Group. As part of the deal, more than a dozen rental communities sold for over $300 million.