JV Acquires Florida Apartments for $54M

DeBartolo Development and Elco Landmark Residential have acquired a 542-unit multifamily complex in Palm Beach Gardens in South Florida.

Palm Beach Gardens, Fla.—DeBartolo Development LLC and Elco Landmark Residential have acquired a 542-unit multifamily complex in Palm Beach Gardens in South Florida. The joint venture partnership between the two paid a reported $54 million, or about $100,000 per unit, for the property.

The joint venture partnership has rebranded the property as Landmark at Garden Square and says it plans to undertake improvements within the next six months. Currently 92 percent occupied, the property—formerly known as Union Square—was built in 1974 and underwent a $23 million upgrade in the mid-2000s under the direction of previous owners, including the seller, Ceebraid-Signal Corp. CBRE’s Robert Given represented the seller in the deal, with the JV representing themselves.

The property, which includes 51 two-story buildings, features a mix of one-, two- and three-bedroom residences with open kitchens and eight-foot ceilings. Situated next to the Jack Nicklaus Sports Complex, amenities include three swimming pools, clubhouse, fitness center, business center, movie theater, tennis court, billiards rooms and a nine-hole putting green.

Neither buyer is a stranger to the Florida multifamily market. The same partnership bought the 384-unit former Sunshadow Apartments in Casselberry, Fla., in January. DeBartolo also recently completed first phase of Andros Isles Apartments, a 360-unit property in Daytona, and acquired Landmark at Woodland Trace, a 384-unit multifamily complex in Central Florida.

Developers in general are eager to build multifamily properties in Palm Beach Gardens, one reason being that a 92 percent occupancy rate is the norm rather than the exception in the market. Kennedy Homes recently won preliminary approval for 423 townhouses and apartments on 52 acres in Palm Beach Gardens, a property it calls Trevi at the Gardens. Also approved are plans by ZOM Development to build as many as 348 apartments on 42 acres in the town.