$ 38 million in new funding for older Palm Beach County apartment complexes
An out-of-state real estate investor and developer has secured $ 38.1 million to fund its value-added improvement strategy for two apartment communities in Palm Beach County.
Federal Capital Partners, based in Chevy Chase, Md., Secured the loan about two months after acquiring Costa Del Lago apartments west of Lake Worth Beach and Coronado Springs East in Palm Springs.
Newmark Knight Vice President Frank Fernando Riboli in Boca Raton and Executive Managing Director Matthew Williams in Tampa closed the transaction on December 20 on behalf of Federal Capital Partners.
The company acquired the two three-story properties last October, according to Palm Beach County property records. These are older multi-family developments. Costa Del Lago was built in 1972 and Coronado Springs in 1985.
The funding is to give Federal Capital an “opportunity to execute its value-added strategy while taking advantage of the strong job and population growth in Palm Beach County,” Riboli said in a press release.
The 218-unit Costa Del Lago sits on 19 acres southeast of Congress Avenue and 10th Avenue North at 2508 10th Ave. N. The 151 unit Coronado Springs East is northeast of Military Trail and Purdy Lane at 555 Kirk Road.
“The communities provide affordable, quality housing options for tenants in the area, and they represent great additions to FCP’s growing portfolio of multi-family properties in Florida,” Riboli said in an email.
Multi-family properties in South Florida are one of the strongest real estate categories, attracting the attention of investors who, like Federal Capital Partners, execute value-added strategies. Much of the new investment has focused on suburbs with garden-style communities.
Added value typically means investors buy older assets in a growing market, upgrade it, and raise rents for higher returns.
Riboli declined to say whether rents in Costa Del Lago and Coronado Springs East would increase once the improvements are complete.
Costa Del Lago offers one, two and three bedroom units with rents ranging from $ 1,050 to $ 1,500, according to the community site. Coronado Springs East offers one and two bedroom units with two bedrooms ranging from $ 1,100 to $ 1,250, according to the community site.
The transaction amounts to $ 103,225 per unit.