JV drops $40M for portfolio of aging Palm Beach County rentals

A partnership between New York and Toronto-based companies is betting on aging apartment complexes in Palm Beach County.

North Point Management and Medallion Corporation bought five garden-style communities consisting of a total of 433 units in unincorporated parts of the county for $40.1 million, according to records and real estate database Vizzda. The selling entities tie to New York-based Arbor Realty Trust.

The buyers took out a $13.3 million mortgage on the properties from Webster Bank.

The portfolio consists of the 67-unit Suntree complex at 4750 Cresthaven Boulevard, the 72-unit Springtree complex at 4854 Elmhurst Road, the 102-unit Elmwood complex at 5015-5135 Elmhurst Road, the 120-unit Greengate complex at 2449 Greengate Circle, and the 72-unit Ambergate complex at 2184 Ambergate Lane, Vizzda and property records show. All of the properties were constructed in the 1980s and consist of several single-story buildings.

The deal breaks down to $92,700 per apartment.

North Point Management, based in New York, is led by Zvi Horowitz. In 2021, the multifamily investment firm scooped up two multifamily properties in Middletown, N.Y., paying $19 million for a 150-unit building and about $10 million for a 112-unit property.

This isn’t the firm’s first wager on South Florida. Last year, it paid a combined $22.5 million for the Hollywood apartment communities at 2410 Oak Garden Lane and at 2500-2654 North 26th Terrace, according to media reports. Both complexes also were built in the 1980s.

Medallion, based in Toronto, owns multifamily, office, retail and industrial properties throughout Canada, according to its website. It also has bought property in New York, paying $38 million for a 222-unit building in the Bronx in 2017.

North Point and Medallion aren’t the only ones to zero in on aging apartment buildings in South Florida. In October, Los Angeles-based Cochise Capital paid just under $30 million for the Cordova Arms building at 1401 Southeast 15th Street in Fort Lauderdale, and The Isle at 1300 Northeast Third Street in Fort Lauderdale. The two properties were completed in the 1960s.

Also last year, South Florida investor Bogdan Georgescu and his family members paid $13 million for a 71-unit multifamily portfolio spanning seven buildings in Fort Lauderdale. The properties are one-story and two-story buildings constructed between 1954 to 1974.