Cortland Sells West Palm Rental at Discount for $208M

Multifamily development firm Cortland sold a garden-style rental complex in West Palm Beach, Fla., for $208 million, property records show. The transaction ranks among South Florida’s largest multifamily sales this year, although it marked a discount for the Atlanta-based seller.

Fairfield Residential bought the 812-unit asset, called Portofino Place Apartments. The property houses 34 three-story buildings across nearly 40 acres at 4400 and 4600 Portofino Way, between North Military Trail and Interstate 95.. 

The deal equates to about $256,200 per apartment and occurred through two deeds. One, valued at $108 million, covered 416 units built in 2003. The other, valued at $100 million, covered the remaining 396 apartments, which were built in 2006.

The buyer nabbed just over $178 million in financing, assuming two loans, with $93.1 million and $85 million respectively in outstanding debt. Both loans, which are backed by Freddie Mac, are scheduled to mature in September 2033.

Cortland purchased the complex for a combined $229 million in 2021, during the height of the pandemic when rents skyrocketed. The nearly $20 million loss is likely in part due to rent growth having slowed since then. 

The recent sale follows another big sale from Cortland. In May, it sold the 456-unit Uptown Boca Villas for $240 million to the real estate investment arm of the Church of Jesus Christ of Latter-day Saints. The deal remains South Florida’s largest multifamily sale so far this year. 

Representatives for Cortland and Fairfield Residential did not immediately respond to requests for comment.

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