Abacus Lands $76M to Build South Florida Rental

Abacus Capital Group has secured $77.5 million in construction financing to build a multifamily development in Palm Beach Gardens, Fla., property records show.

Beverly Hills-based Kennedy Wilson and Toronto-based Fairfax Financial, through its seven affiliates, provided the four-year, floating-rate loan. The financing comes as Fairfax attempts to buy the publicly traded Kennedy Wilson, valuing the company at $1.5 billion, Bisnow reported. 

The Palm Beach Gardens development, called Arbor House, will include a 13-story residential building with 302 apartments and an eight-story parking garage with 480 spots. The project will face Route A1A, near the Gardens Mall, at 11200 RCA Center Drive. 

Apartments will average 956 square feet, with 10 percent of the units designated as workforce housing, priced within 120 percent of the area’s median income. The New York-based developer had purchased the 5-acre parcel for $17.5 million in 2022. 

“With only two Class A deliveries since 2019 and 41 percent rent growth driving a significant rent-to-own arbitrage, this transit-oriented asset will capture outsized demand from the financial services migration to West Palm Beach’s CBD,” JLL’s Joshua Odessky said in a statement.

JLL negotiated the debt, alongside Mona Carlton and Michael Romero. 

The Palm Beach Gardens multifamily investment sale market has remained active. Last week, West Shore paid $118 million for a 21-acre, 542-unit multifamily community nearby. Last month, TA Realty bought back a 476-unit property for $193 million.

Representatives for Abacus, Kennedy Wilson and Fairfax did not immediately respond to a request for comment.

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