Griffis Residential acquired a West Palm Beach apartment complex for $78.5 million as part of its new multifamily fund, according to a March 13 announcement. The purchase comes amid ongoing challenges in the South Florida rental market.
The acquisition involves an eight-story, 263-unit property at 805 North Olive Avenue, previously known as Loftin Place and now rebranded as Griffis North Olive. Castle Lanterra, based in Suffern, New York and led by Elie Rieder, sold the building to Griffis Residential. The deal was financed with a $56.7 million loan from Northmarq Capital that matures in 2036.
The sale price equates to nearly $300,000 per unit for the building, which consists of studios as well as one- and two-bedroom units. Completed in 2015 on a 2.5-acre site, the property last traded for $63.5 million in 2017.
This purchase is part of Griffis Premium Apartment Fund VII, which targets $550 million in investments focused on underperforming properties with value-add potential in markets showing strong economic indicators. According to the company’s release, Griffis Residential’s portfolio includes nearly 10,000 units across 31 communities in 13 markets nationwide.
Griffis Residential has been active in South Florida recently, acquiring a 144-unit building at 275 North Federal Highway in Pompano Beach for $41 million in January and another property at 345 Banyan Boulevard in downtown West Palm Beach for $87 million last June.
The West Palm Beach area has seen significant investment activity recently but continues to face some softness due to record-high completions of new apartments and slower domestic migration into the region. In January, average asking rents dropped by four percent year-over-year to just over $2,200 per month. Despite these trends, investment sales have continued sporadically throughout Palm Beach County.
