Related Cos. Buys West Palm Beach Affordable Housing Buildings for $65M
The Related Companies is expanding its West Palm Beach real estate empire to affordable housing, purchasing two apartment buildings for a combined $65 million, records show.
In partnership with the non-profit Rainbow Housing Assistance Corporation, Related acquired the 148-unit St. James Residence and the 177-unit St. Andrews Residence from the Episcopal Diocese of Southeast Florida for $40 million and $25 million, respectively.
Both buildings, which target seniors and total 239,712 square feet, are located between Fern Street and South Flagler Drive, which faces the Intracoastal Waterway. St. Andrews last traded for $3.3 million in 2009, while the Related sale marks the first acquisition for its counterpart.
The nonprofit and the real estate behemoth, led by Miami Dolphins owner Stephen Ross, plan to invest more than $19.5 million to renovate the properties, the firms say. The work is expected to end by 2022. The federal affordability program at one of the buildings, St. Andrews, was at risk of lapsing as early as October 2021, Related noted.
Bonds issued by the Housing Finance Authority of Palm Beach County are financing the acquisition and renovation. Other financing partners include Fannie Mae and Wells Fargo Bank, according to Related. A company spokesperson did not immediately respond to a request for more information about the financing.
Related is one of the largest developers in the country, known for its luxury portfolio that includes the $25 billion Hudson Yards in New York City. It will keep affordable housing standards for at least 20 years at the two properties, the company says.
“We believe everyone, regardless of income level, deserves to have a place to call home,” Related’s Senior Vice President of Affordable Housing Dave Pearson said in prepared remarks.
Related has become one of the leading office landlords in West Palm Beach, purchasing and developing more than a million square feet in the past year, including its 360 Rosemary tower, which is set to welcome financial heavyweight Elliot Management and Point72 Asset Management.
In addition to its office portfolio, Related developed and owns Rosemary Square, a 600,000-square-foot, mixed-use, outdoor shopping center in Downtown West Palm Beach.
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