Denver Investor Buys South Florida Rental for $91M
By Julia Echikson November 8, 2024 3:52 pm
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Investment firm Grand Peaks has agreed to put down $90.9 million for a multifamily property in Boca Raton, Fla., nabbing a slight discount from its 2019 sale price, property records show.
Called The Seven at West Boca, the 393,810-square-foot complex features 448 apartments at 10147 Boca Entrada Boulevard, just west of Route 441 near the western edge of Palm Beach County. The five-building property, which was completed in 1988, sits across 35 acres and includes a clubhouse, a pool and tennis courts.
The Denver-based buyer assumed the seller’s acquisition loan, which has $62.3 million in outstanding debt, according to a public filing. U.S. Bank is acting as the administering agent for a commercial mortgage-backed securities firm tied to the Bank of America.
In 2019, American Landmark Apartments purchased the garden-style property for $91.5 million.
Rents have risen since the pandemic — up by 0.3 percent year-over-year on average to $2,250 a month — and occupancy stands at nearly 95 percent in South Florida, according to Berkadia. However, interest rate hikes and inflation have raised the cost of operating multifamily assets.
But the exact reason for the drop in price remains unclear. Representatives for Grand Peaks and American Landmark Apartments did not immediately respond to a request for comment.
Julia Echikson can be reached at jechikson@commercialobserver.com.
