AHS Residential Nabs $37M to Build Affordable Rental in West Palm
By Julia Echikson December 15, 2021 6:23 pm
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Yet another multifamily project is underway in West Palm Beach, Fla.
AHS Residential nabbed a $37.2 million construction loan from Truist Bank, formerly known as SunTrust Bank, according to property records. The development, called AHS Pine Ridge, is located between First Street and Southern Boulevard, less than two miles from Palm Beach International Airport.
The Miami-based developer plans to build an affordable housing rental complex with 288 units across four four-story buildings. AHS completed the purchase of the 11.6-acre vacant parcel in 2020, per records. Construction began this August, and the developer expects to deliver the project in the first quarter of 2023.
All apartments will be part of the Palm Beach County Workforce Housing Program and, as such, will be priced for households earning between 60 and 140 percent of the area median income, according to AHS. The 2021 AMI in Palm Beach County is $80,200 for this year, according to the Department of Housing and Urban Development.
Rents in West Palm Beach have risen since the pandemic hit as northerners relocated and wealthy companies, such as Goldman Sachs and Millennium Management, inked office deals in the Southern State.
Average monthly rents in West Palm Beach multifamily apartments jumped by 10 percent to $1,872 between 2020 and 2021, according to a report from brokerage Marcus & Millichap. The vacancy rate fell to 3 percent, dropping by 2 percentage points during the same period.
AHS joins other developers in the affordable housing sector in West Palm Beach. In September, Stephen Ross’ Related Companies and a nonprofit bought two apartment buildings along the Intracoastal Waterway for a combined $65 million with plans to renovate the properties while keeping them affordable.
West Palm Beach has also seen its fair share of uber-luxurious developments this year. Last month, Two Roads Development and Alpha Blue Ventures scored a $121.5 million loan to build a 24-story high-rise, where condo prices go as far up as $30 million.
Julia Echikson can be reached at Jechikson@commercialobserser.com.
