Viewing posts categorised under: News

New luxury apartments part of West Palm Beach’s Warehouse District transformation

News / 19.05.20210 comments

Local government leaders are hailing a new luxury apartment complex in West Palm Beach’s Warehouse District as an important part of the area’s transformation from a neglected stretch of dilapidated buildings to a hip place to work and play.

City officials said the 178-unit District Flats complex, located at 1050 Blanche Street, is the first multi-housing project built in the Warehouse District, roughly located between Elizabeth Avenue and Clare Avenue east of Interstate 95 and west of Flamingo Park. The complex includes 36 units that have been set aside as workforce housing to be rented at discounted rents.

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Tomoka Point

Tomoka Pointe luxury apartment complex in Daytona sells for record $57.1M

News / 04.12.20200 comments

DAYTONA BEACH — Just over a year after welcoming its first residents, the Tomoka Pointe Apartments behind Tomoka Town Center shopping center has sold for $57.1 million.

It’s the most ever paid for an apartment complex in Volusia County and comes on the heels of record-setting sales of two mobile home parks in the Daytona Beach area.

The buyer of the 276-unit Tomoka Pointe Apartments is an investor group that has offices in South Florida and Atlanta, Georgia, said Ryan Moody, one of the commercial Realtors with Newmark Knight Frank that was involved in negotiating the real estate transaction. Moody is a senior managing director with the national real estate brokerage.

He did not identify the buyer.

Residents at Tomoka Pointe recently received notices informing them of the change in ownership. The new owner is identified as an entity called “WP TomokaPT MF-FL Owner LLC.”

State incorporation records show the address for WP TomokaPT as being in Plantation. The address is also shared by two other companies, CT Corporation Systems, and a newly formed entity called Paragon Healthcare Limited Partnership. CT is a subsidiary of Wolters Kluwer, a multi-national information systems company based in the Netherlands with offices in countries throughout the world.

The sale of Tomoka Pointe at 1317 Tomoka Town Center Drive closed on Nov. 23, Moody said. The luxury apartment complex is along the west side of Tomoka Town Center, just north of Mason Avenue.

The seller was a partnership of Palm Beach Gardens-based Eastwind Development and West Palm Beach-based North American Development Group. North American is the developer of Tomoka Town Center.

The developers of Tomoka Pointe Apartments just completed the 240-unit Madison Pointe Apartments next door on Nov. 19. Madison Pointe is directly north of Tomoka Pointe at 1310 Tomoka Town Center Drive.

The sale price for Tomoka Pointe is a new record, both in total amount as well as how much it fetched per unit: $207,884.

The previous record for total amount was believed to be the $46.2 million sale in 2018 of the Sands Parc Apartments just under a mile to the north along the east side of Williamson. Sands Parc was the LPGA area’s first new luxury apartment complex when it was completed in 2017.

“(More than) $206,000 a door, that’s a really good number,” said Ty Lohman, an Ormond Beach investor who was not involved in the Tomoka Pointe sale but has bought and sold a number of apartment properties both in the Daytona Beach area as well as in Jacksonville and Orlando in recent years.

“I can’t think of a bigger sale for a single apartment property (in Volusia County),” said Lohman. “With interest rates so low right now, the demand (among national investors for apartment properties) is there.”

Appeal of luxury apartments increasing

Luxury apartment properties, also known as “Class A multifamily,” are appealing to investors as a safe, steady source of revenue, according to a recent article in Forbes magazine. That appeal has increased with the onset of the COVID-19 coronavirus pandemic.

“Multifamily has historically been a very good investment during a recession. Now, with the pandemic creating volatility in office, retail, industrial and other sectors, the capital usually directed toward those investments will most likely seek the stability and predictability of multifamily,” according to the Forbes article. “Why is multifamily the strongest asset class during the pandemic? It’s pretty simple: Everyone needs a place to live.”

Ryan Moody of Newmark said the occupancy rate for Tomoka Pointe Apartments is in the low to mid-90% range.

Luxury apartments also hold strong appeal to investors because they tend to be located in fast-growing communities with the demographics to support them.

The LPGA corridor has been the fastest-growing area in Volusia County in recent years. New developments include the side-by-side Tanger Outlets and Tomoka Town Center shopping centers, the Jimmy Buffet-themed Latitude Margaritaville 55-and-older community and all-ages Mosaic “full life” community on the west side of I-95, the new Publix-anchored Latitude Landings shopping center in front of Margaritaville, and distribution facilities for both Trader Joe’s and Amazon.

The area also saw the $96 million sale in July of the 533-home site Aberdeen 55-and-older manufactured home community along the west side of Clyde Morris Boulevard, which set a record for the most money paid for a mobile home park in Volusia County. That record is set to be eclipsed this month when The Falls at Ormond 55-and-older mobile home park just up the street from Aberdeen is set to close. The sale price for The Falls has not yet been disclosed, but is believed to be more than $120 million, according to Frank Valenti, president of the community’s homeowners association.

The buyers of both Aberdeen as well as The Falls are national investor groups.

The area’s growth has spurred a surge in new luxury apartment projects in the area, including the new 500 East Apartments on LPGA Boulevard, just east of Clyde Morris Boulevard and the new Napier Apartments on the east side of Williamson, across from the AdventHealth Daytona Beach hospital.

The website apartments.com lists rental rates for apartment units at Tomoka Pointe ranging from $1,216 to $1,800 a month.

“With that kind of return, investors can afford to spend that kind of money,” said Buddy Budiansky, a commercial Realtor with Realty Pros Commercial, who was not involved in the Tomoka Pointe sale.

Carl Lentz IV, the managing partner at SVN Alliance Commercial Real Estate Advisors in Ormond Beach, said he is not surprised that Tomoka Pointe sold for such a high amount.

“The growing demand for multifamily has created the necessary stability to entice investors to place their money in multifamily investments in the growing Daytona Beach market,” he said.

Demand for luxury apartments in the Daytona Beach area has increased since the pandemic began because it is causing more people to relocate here from other parts of the country.

“A lot of people would rather rent a luxury apartment and enjoy the amenities they offer rather than buy a home and the headaches that come with homeownership,” he said. “I see that trend continuing for another three to five years at least.”

Article reprinted from The Daytona Beach News-Journal

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Eastwind developing multifamily project in Posner Park

News / 08.09.20200 comments

Siena Pointe, a 55-plus community, becomes latest component to $500 million, mixed-use development in Polk County.

by: Kevin McQuaid Commercial Real Estate Editor

A Palm Beach Gardens developer has acquired seven acres in a planned $500 million, mixed-use development in Polk County to build multifamily housing.

Eastwind Development paid $2.72 million for the Posner Park tract, at Interstate 4 and U.S. 27, county property records indicate.

The company’s Siena Pointe community, containing 163 units and related amenities, will be limited to residents 55 years and older, according to its website and information from commercial real estate brokerage Cushman & Wakefield, which represented seller BTI Partners of Fort Lauderdale in the sale.

Cushman & Wakefield’s Andy Slowik and Margery Johnson negotiated on behalf of BTI Partners, which also is the master developer of the $500 million Westshore Marina District property, in Tampa.

BTI Partners and affiliate Westport Capital of Connecticut began selling tracts within the 130-acre Posner Park community in 2018.

“BTI’s flagship investment strategy is predicated on acquiring residential and mixed-use land located in the path of economic growth, with a focus on major MSAs across Florida,” says BTI Partners’ Chief Investment Officer Justin Onorato.

He adds that with the Eastwind sale, only one 13-acre tract remains within Posner Park. That site is likely to be reserved for a high-traffic retailer, such as a home improvement retailer.

To date, the Davenport project contains a 170,000-square-foot retail center. Future plans call for apartments, short-term rental units and a light industrial building.

“Retail adjacent to the site contributes to walkable amenities for future tenants,” Johnson says of the planned Eastwind project.

The article was taken from the Florida Business Observer.

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Developer of Tampa’s Westshore Marina District sells off Polk County land

News / 14.08.20200 comments

The developer of Tampa’s Westshore Marina District has sold off a parcel of a mixed-use project in Polk County. BTI Partners, based in Fort Lauderdale, sold a 7-acre parcel in Davenport’s Posner Park to Eastwind Development, which is planning to build a 55-and-up apartment complex on the property.

Posner Park is a 100-acre mixed-use development site near the interchange of Interstate 4 and U.S. 27. BTI started selling off parcels in the project in 2018, GlobeSt reports.

“BTI’s flagship investment strategy is predicated on acquiring residential and mixed-use land located in a path of economic growth, with a focus on major MSAs across Florida,” said Justin Onorato, CIO of BTI Partners, in a statement. Andy Slowik and Margery Johnson of Cushman & Wakefield represented the seller, an affiliate of BTI, in the transaction.

“The high traffic counts on both Interstate 4 and US 27 at this interchange contribute to the attractiveness of Posner Park,” Slowik said in a statement.

This is the fourth parcel within Posner Park that Cushman has sold, the brokerage firm said. The property is home to a 170,000-square-foot retail center.

“Retail adjacent to the site contributes to walkable amenities for future tenants,” Johnson said.

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From elderly to kids not moving out, lack of axordable housing a concern in Palm Beach County

News, Workforce Family Housing / 13.02.20200 comments

By Larry Keller Special to The Post
Posted Feb 4, 2020, at 6:15 PM

Re-printed from The Palm Beach Post

Speaking at The Kravis Center, President and CEO of Housing Leadership Council of Palm Beach County Suzanne Cabrera said residents who are elderly, disabled or have special needs sometimes pay more than 80 percent of their income on housing.

Suzanne Cabrera fields an array of phone calls from people desperate for an affordable place to live in her position as president and CEO of Housing Leadership Council of Palm Beach County.

“I get a lot of calls from the elderly,” she told an audience of perhaps 400 people at a Kravis Center luncheon sponsored by the Community Foundation for Palm Beach and Martin Counties. “But the second-highest category is parents saying I need my kid to move out of the house. We don’t have basements in Florida where your kids can live with your forever,” she said to laughter.

Cabrera was on a panel that provided a lot more sobering assessments than laughs when discussing the causes and potential solutions to affordable housing in Palm Beach County.

Ideally, nobody should be paying more than 30 percent of their income for Cabrera said. But according to data she provided, more than 250,000 Palm Beach County households spent more than that percentage, with 135,000 of them spending more than 50 percent of income toward housing. Residents who are elderly, disabled or have special needs sometimes pay more than 80 percent of their income on housing.

The average home price in Palm Beach County is $350,000, so a household would need an income of more than $116,000 in order to spend less than 30 percent on its housing costs, Cabrera said. The average rent of $1,620 would require an income of more than $58,000 to not exceed the 30-percent threshold.

The county’s population has grown 12 percent in the past 10 years, and housing units have not kept pace, said Jack Weir, president of Eastwind Development Group. “We’re just not producing that many units, across the board. “West Palm Beach is trying to attract financial services companies … and those businesses are not going to come here and the businesses here are not going to be able to grow if they can’t have housing for their folks who are working.”

Panelists said the problem would be less dire if the state legislature didn’t divert vast sums of money intended for the construction and retrofitting of affordable housing to other programs. Known as the State Housing (or Sadowski) Trust Fund, it was created in 1992 by having doc stamps on all real estate transactions being earmarked for the fund. The hotter the real estate market, the more money would be generated for affordable housing.

In the past nine years, according to Cabrera’s data, Palm Beach County has contributed $251.9 million from doc stamps, but $157.7 million has been diverted by legislators for other purposes.

In the last fiscal year alone, the county could have received $17 million from the doc stamp revenue, Weir said. “Instead, it got $2 million. “One of the first things the Legislature could do is treat it as a trust fund and not a slush fund.”

Weir urged the audience to push legislators to use the fund for its intended purpose. Another solution, he said, is issuing bonds. Miami-Dade County issued a $400 million bond, with $100 million designated for affordable housing. The city of Miami has issued $85 million in bonds for affordable housing. Orange County has established a $160 million fund over 10 years designed to create 30,000 affordable housing units, he said.

“It may be time for Palm Beach County to think about a dedicated funding source for affordable and workforce housing,” Weir added.

Short-term solutions, Weir said, include cities providing density bonuses for a percentage of new units to be built for workforce housing, reductions or waivers of some building fees in return for some units being set aside for affordable or workforce housing, and low-interest loans from municipalities to developers of such properties.

The county does some of these things, said Jonathan B. Brown, director of the Palm Beach County Department of Housing and Economic Sustainability. “It’s not just the county,” he said. “There has to be assistance from the municipalities. You would probably be surprised at the number of municipalities that don’t even have a housing department or a housing division.”

Based on survey done more than a year ago, 80 percent of county employees qualified for the workforce housing program, Brown said. The figure tops 90 percent for teachers, he added.

“Our own employees are not being able to find housing,” said another panel member, Wellington mayor Anne Gerwig. “We have adjusted some pay because of that. If you can’t live in the community you work in, it creates a whole other problem with transportation.”

Brown reminded the audience that employed homeless people living in their vehicles also need to be considered when discussing affordable housing. “That’s a population that we don’t want to forget about. They are part of this community and we need to make sure that we’re vigilant in addressing housing for our homeless population.”

Weir said another partial solution to the housing crisis in the future is mixed use developments. “One of the most exciting frontiers right now is redevelopment and repurposing of existing retail centers and commercial space,” he said, citing older shopping centers with vacant retail units along U.S. 1, Dixie Highway and Military Trail.

“A lot of those can be re-purposed and turned into mixed-use centers where they have housing, they have retail, they have restaurants, they have office,” Weir said. “We’re doing one of those developments in another county. That’s going to be a ready source of new housing units, a fair share of which will be affordable or workforce housing in the coming years.”

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Apartment complex breaks ground at Palm Beach County mixed-use center

News / 15.01.20200 comments

An apartment complex has broken ground at City Centre in Palm Beach Gardens after the developers secured a $24 million construction loan.

M&T Bank awarded the mortgage to City Centre Housing, an affiliate of Palm
Beach Gardens-based Eastwind Development Group and Prague, Czech Republic­based ICP. It funded the Solera at City Centre apartments on the southwest side of City Centre, which sat 2000 PGA Blvd.

Verdex Construction recently filed notice with the county that it started
construction on the project.

Solera at City Centre will have 136 apartments in four stories. Amenities would
include a pool, a clubhouse, and a central courtyard. Ten percent of the units will be for workforce housing.

The developers acquired the 3.2-acre site for $4.25 million in October 2019.
City Centre currently has 99,063 square feet of retail, offices and restaurants, so having apartments there could drive more traffic to the commercial tenants.

From the South Florida Business Journal

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District Flats featured in WPB Magazine

Affordable Housing, News, properties / 08.01.20200 comments

A new project, The District Flats rental community is coming to in West Palm Beach’s popular Warehouse District. The 178-unit multifamily development will be located at 1050 Blanche Street and will be a key addition to a neighborhood that has become a favorite destination for millennials… of all ages!

The District Flats will feature a modern-industrial designed, four-story building surrounding a central courtyard, swimming pool and deck area; a three-story building surrounding a garden amphitheater; and a three-level, 250-space parking garage enhanced by a large mural at the entry.  A dog park and a public park at the south end of the site is planned, and the project will also include 2,700 sq. ft. of commercial space that will be home to a stylish cafe. There will be 26 studio apartments; 86 one-bedroom, one-bath units; and 48 two-bedroom, two-bath apartments, along with a 3,000 sq. ft. clubhouse.

“This project will not only answer the growing need for housing around Downtown West Palm Beach but will also help solidify the Warehouse District as the city’s next hub of urban activity,” said Jack Weir, founder and managing principal of Eastwind Development. “We see great things ahead for both Palm Beach County and the City of West Palm Beach.”

Designed by MSA Architects, with Verdex Construction as the general contractor, The District Flats is located south of the trendy Grandview Public Market food hall and other nearby retail and entertainment outlets like Steel Tie Distillery, Steam Horse Brewing Company and Surfing Florida Museum.

All units will feature nine-foot ceilings, keyless door entries, programmable thermostats, tile & wood plank flooring, stainless steel appliances, granite countertops, pendant light fixtures, bedroom ceiling fans and energy and water conservation features designed to lower monthly resident utility bills.

The development will also feature a set-aside for workforce housing. Twenty (20%) percent (36 units) in the community will be set aside for households with an annual income equal or less than 140% of the 2018 annual median income (AM I) for Palm Beach County for studios ($75,460 income), 1 BR units ($80,850 income) and 2 BR units ($97,020 income) at the time of initial leasing, Rents for the workforce housing units are not projected to be lower than market rents. The workforce housing restrictions will last for a period of 15 years.

You can download the pdf of the article here.

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First apartment project breaks ground in Warehouse District

News / 06.11.20190 comments

The first modern apartment building has broken ground in the Warehouse District of West Palm Beach.

Located on the outskirts of downtown, the collection of warehouses along Clare Avenue and Elizabeth Avenue are transitioning from industrial use to dining and entertainment. That has made it a more attractive place to live. Synovus Bank boosted its mortgage to Warehouse District Flats LLC, an affiliate of Palm Beach Gardens-based Eastwind Development Group, from $3 million to $30.5 million. It covers the 5.53-acre site at 1630, 1710, 1940 and 1980 Clare Ave. The 55,519 square feet of warehouses there will be demolished.

Eastwind Development Group plans to build Ois1rict Flats In West Palm Beach. Verdex Construction recently filed notice with the county that it started construction of 178 apartments and 2,700 square feet of commercial space there. The buildings will rise three and four stories, with a parking garage between them. Ron Roan, VP of development and acquisitions at Eastwind, said the project should be completed in about 15 months.

“It’s going to be a real shot in the arm to the neighborhood,” Roan said. “There is already the exciting retail there. Our intent is to provide good quality housing with good proximity the retail. It should help the whole area grow.” The developer pledged to make 36 of the apartments there workforce housing, with rents set for households earning no more than 140 percent of median income. Units would range from 550 to 1,000 square feet. There would be 26 studios, 86 units with one bedroom, 18 units with one bedroom and a den, and 48 units with two bedrooms.

Roan said the smaller apartments would rent for about $1,500, while the larger two-bedroom units would rent for around $2,300. For the commercial space, Eastwind developer is seeking a coffee shop with a unique theme, he added. The amenities would include an interior pool courtyard with cabanas, a garden courtyard, a dog park and a public art park on the south side of the project.

District Flats was designed by MSA Architects. The developer acquired the property in two deals for a combined $5.17 million in April.

To receive text alerts and insights from South Florida Business Journal Senior Reporter Brian Bandel/ about the latest real estate news (with a side of health care and universities), join Project Text.

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Apartment developer buys site for $4M, plans construction

News / 28.10.20190 comments

Eastwind Development Group and ICP have purchased land within the City Centre commercial center in Palm Beach Gardens, where they plan to build apartments.  City Centre Associates LLC, managed by Brian K. Waxman of AW Property, sold 3.2 acres for $4.25 million to City Centre Housing LLC, an affiliate of Palm Beach Gardens-based Eastwind Development Group and Prague, Czech Republic-based ICP. It’s on the southwest side of City Centre, a 99,063-square-foot retail, office and restaurant complex at 2000 PGA Blvd.

Law form Mathison Whittles LLP represented the buyers in the deal. The vacant property last traded for $1.55 million in 2017. CO~i’, l A~CHITECTS The So!era at City Centre apartments in Palm Beach Gardens would have 136 units. Eastwind Development, led by John F. Weir, said it plans to build Solera at City Centre with 136 apartments in four stories. Amenities would include a pool, a clubhouse, and a central courtyard. Ten percent of the units will be for workforce housing, the developer said.

The city has already approved the project. The developer plans to break ground in December.

Brian Bandell
Senior Reporter
South Florida Business Journal

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Ventura Pointe Apartments, Pembroke Pines, Fl

South Florida Community Trades for $56M

News / 07.10.20190 comments

Lloyd Jones, a Miami-based multifamily investment firm, has purchased Ventura Pointe, a Class A residential community in Pembroke Pines, Fla., from seller Eastwind Development, according to Yardi Matrix data. The firm paid $55.6 million for the recently built community, which was completed last year.

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