Hyperion Group’s long-planned Boynton Beach apartment project got a jumpstart with a $108 million construction loan and an equity partnership with Silverstein properties.
The deal comes as South Florida’s multifamily market is feeling the sting from a supply overhang following hefty completions in recent years and slower in-migration. As a result, lease-ups have slowed, concessions have increased and average rents in the region have decreased.
Miami-based Hyperion and New York-based Winter Properties plan the eight-story, 371-unit luxury Ocean One building at 114-222 North Federal Highway. Madison Realty Capital provided the construction loan.
Adam Doneger was part of the Newmark team that represented Hyperion and Winter in the equity deal, and Jordan Roeschlaub was part of the Newmark team that represented the borrowers in the financing.
New York-based Silverstein is led by Larry and Lisa Silverstein.
The debt and equity deals come on the heels of Hyperion and Winter winning additional local government incentives for the project. In January, the Boynton Beach Community Redevelopment Agency bumped up the tax increment financing to $11.5 million from the previously allocated $9 million.
It’s reportedly the CRA’s biggest TIF allocation. Still, Hyperion had requested a $16 million subsidy, citing higher construction costs and insurance, stubborn inflation and elevated interest rates, as well as uncertainty due to tariffs.
Hyperion, led by Rob Vecsler, and Winter, led by David Winter, have been planning Ocean One since at least 2023, with completion originally expected early this year.
The pair paid $12 million for the 3.7-acre development site in 2021 and scored approval in 2023.
Across South Florida, developers have persistently pursued new multifamily projects, despite the market slowdown. They seized on the market boom during the pandemic era, completing a record 18,600 units in the tri-county region in 2024, according to CoStar data. Amid the supply overhang, they still finished 12,718 units last year, CoStar data shows.
Even as many buildings across South Florida are offering one-to-two months of free rent and other concessions, developers starting construction now are confident their projects will lease up, saying demand will be restored by the time they finish. Also, many are betting on another in-migration wave fueled by shifting political winds in New York and elsewhere.
South Florida also is defying higher interest rates, with construction financing still flowing. Last month, Clara Homes landed $80 million to build its third luxury apartment building in Bay Harbor Islands with 77 units. Also last month, Development Alliance scored a $43.3 million construction loan for the eight-story, 189-unit Nexus Leah in Hialeah, while Ascentris and Zom Living are planning a 380-unit Live Local Act redevelopment of a Doral office building with the help of a $92.3 million construction loan.
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South Florida
Financing flows in South Florida as projects nab over $300M in loans