Integra Investments picked up a 317-unit apartment complex in West Palm Beach for $55.5 million, in an otherwise sluggish multifamily investment market.
The Miami-based firm bought Monaco Isles at 800 The Pointe Drive from New York-based Axonic Properties, according to Vizzda records. Integra took out a $41 million Freddie Mac loan originated by KeyBank Real Estate Capital for the purchase.
Hampton Beebe of Newmark represented the seller.
The purchase breaks down to $174,953 per unit.
Completed in 1987, the complex consists of 26 two-story buildings and a clubhouse on an 18.2-acre site. Monaco Isles offers one-bedroom and two-bedroom apartments, with monthly rents ranging from $1,575 to $2,205, according to Apartments.com.
The property was a condominium that Axonic purchased through several bulk unit deals and converted to apartments.
In 2019, the firm paid $8.5 million for 87 units, Axonic Managing Principal Jonathan Shechtman said in an email. In subsequent years, the firm bought the balance of the units in 188 deals for a total of $31.1 million. Last year, Axonic folded the condo association.
Shechtman leads Axonic with Principal Brian Kennedy. The real estate firm has raised and invested six private equity funds with a combined deal volume of about $2 billion since it was founded in 2012, according to Shechtman. It was part of structured credit hedge fund Axonic Capital from 2012 to 2016.
In 2022, Axonic paid $63.6 million for the 315-unit Bella Vista apartment complex at t 3541 Northwest 30th Place in Lauderdale Lakes. Last month, it also sold 247 of the 288 condos at the Breezes at Palm-Aire complex in Pompano Beach to DGE Investments. Axonic had purchased 153 units in 2021 for $25.4 million, amassing the remaining condos in subsequent years.
Integra, a development and investment firm, is partnering with the Pérez family’s Related Group on the development of the 50-story, 152-unit St. Regis Residences condo tower at 1809 Brickell Avenue in Miami’s Brickell. The pair scored $527 million in construction financing for the project last month.
Last year, Integra, the Ardid family’s Key International and Wexford Real Estate Investors completed the four-story, 32-unit Boca Beach Residences condo project at t 725 South Ocean Boulevard in Boca Raton.
South Florida’s multifamily market was supercharged from an influx of out-of-state residents from late 2020 to mid-2022, prompting record rent increases and a slew of investment sales. As developers seized on the bonanza, they started new projects, with South Florida expected to get a record 23,863 new units by year-end.
The supply comes as demand has tempered, leading to slower leasing and rent growth. Investment sales have also calmed due to elevated interest rates.
In one of the few recent deals, Dermot Company dropped $144.2 million last month for the 350-unit The Quaye at Wellington complex at 1090 Quaye Lake Circle in Wellington. Also, Kushner Companies is under contract to purchase the 28-story, 276-unit Hamilton apartment building at 555 Northeast 34th Street in Miami’s Edgewater for $190 million. Aimco is selling the building after renovating and fully leasing it last year.