How to Find Success with a Class B Property
- Feb 25, 2015
Boynton Beach, Fla.—Multifamily real estate investment and management services provider Advenir has acquired the Boynton Beach, Fla., property formerly called La Costa. Now renamed Advenir @ La Costa, the community is a 328-unit, Class B property located at 4101 Mahogany Dr. in Boynton Beach.
Advenir acquired the property from REEF, an institutional pension fund advisor, for $36.8 million. The acquisition follows by about half a year Advenir’s $30 million purchase of Advenir @ Banyon Lakes, a 288-unit apartment community situated about 2.5 miles south of Advenir @ La Costa.
“Advenir is based in Miami, and although we own and operate throughout Florida, Texas and Colorado, expanding our South Florida portfolio is always a primary goal of ours,” Advenir chief acquisition officer Todd Linden told MHN. “La Costa presented the ability to acquire an extremely well-located value-add apartment community in one of the best performing rental markets in Palm Beach at a very attractive basis to new development cost. These factors, combined with the attractive Freddie Mac financing, provide our high-net-worth investors with double-digit cash flow and the opportunity for long-term capital appreciation.”
La Costa is Advenir’s third apartment community acquisition in the Boynton Beach submarket in the past three years.Company officials have spent many hours understanding the submarket’s fundamentals, economic drivers and competitive set, Linden said. “[Being] armed with real time market intel and rental rates of our properties and the competition made us very comfortable with the value-add business plan we will execute,” he said.
Thirty of the units at Advenir @ La Costa were upgraded by the previous owner, and now command premium rental rates. Advenir plans additional capital improvements totaling $4 million. These improvements will be undertaken in an effort to enhance the community’s exterior, amenities and remaining 298 units.
Among the planned enhancements to the exteriors will be painting, siding repairs, full roof replacement, landscaping, tree trimming, parking lot repairs and improvements to exterior lighting and property signage. Common-area improvements will include a fitness center, dog park, pool furniture, summer kitchen and benches throughout the property.
Advenir @ La Costa places residents within 20 minutes of two major job hubs via Interstate 95 and Florida’s Turnpike. One of those employment centers is in West Palm Beach, the other in Boca Raton. Thirty minutes north is the $600 million Scripps Research Institute, where some 6,500 high-wage jobs are projected to be created in the next 15 years.
Just half a mile east is Quantum Corporate Office Park, a 600-acre commercial park supporting more than 3,000 jobs. And one mile south is the Boynton Beach Mall, anchored by Macy’s, Dillard’s, JCPenney and Sears.
Advenir represented itself in the acquisition. Charles Foschini of CBRE secured financing. CBRE’s Robert Given and Zachary Sackley represented REEF.
“Advenir specializes in adding value to its residents by providing white glove customer service, and implementing strategic capital improvements to the amenity offering and unit interiors,” Linden said. “Current and new residents will be able to take pride in their community and home within.”