Richman Group Lands $62M to Build Multifamily Development in Palm Beach County: Updated

The Richman Group obtained $62 million in financing to build workforce housing development in Palm Beach County, Fla., property records show.

Merchants Bank of Indiana provided a $47 million construction loan, while Palm Beach County’s low-interest workforce housing bond program granted a $13 million mortgage and Merchants Capital Corporation funneled a $2.35 million tax-exempt loan.

The debt will fund the Residences of Lake Worth, which is set to feature 195 units, 279 parking spaces and about 5,000 square feet of amenities, including a club room, a fitness room, a yoga room and a pool deck. The development will house three five-story buildings and include 30 workforce housing apartments, per the South Florida Business Journal. 

In 2021, the Connecticut-based developer paid $5 million for the 7.3-acre site at 2431 Second Avenue North, a mile west of Interstate 95 and the Lake Worth Beach Tri-Rail train station, according to property records. 

The loan comes as the South Florida multifamily construction pipeline has slowed in the face of high interest rates and stalled rent growth. 

The Richman Group, founded by Richard Paul Richman, purports to own more than 2,070 properties nationwide, accounting for 166,500 units. In South Florida, it developed and still owns the 330-unit Blu27 building in Miami’s Edgewater and the 354-unit Boca Vue complex, among other properties. Last year, it completed the 396-unit Marc property in Palm Beach Gardens.

A representative for Richman Group did not immediately respond to a request for comment.

Update: The story was updated to include the financing from Palm Beach County and Merchants Capital Corporation.

Julia Echikson can be reached at jechikson@commercialobserver.com.