Firm closes third transaction in West Palm Beach for 2016
WEST PALM BEACH – November 7, 2016 – Berkadia today announced the sale of Palm Hill Apartments, a 224-unit multifamily property located in West Palm Beach, Florida. Axonic Properties of New York acquired the property from seller FC Palm Hill of Miami for $13.75 million, or $86.40 per square foot. It is a fractured condo deal with 224 units of a total of 385, with 93% occupied at the time of sale.
Senior Director Tal Frydman and Directors Yoav Yuhjtman and Fernando Polanco of Berkadia’s South Florida office brokered the sale. This is the firm’s third transaction in West Palm Beach so far this year, including the $7,784,500 sale of Royal Poinciana and the $36.35 million sale of Viera Palm Beach.
“Panamanian-based FC Palm Hill purchased the property during the downturn and were able to turn it around to a fully stabilized asset,” Yuhjtman said. “Given the current market conditions, the group decided it was the right time for them to capitalize on South Florida’s strong market.”
“This is Axonic Properties’ first South Florida multifamily property transaction, as they own additional fractured condo deals around the state,” Frydman added.
The local market remains strong with the average rent increasing by 5.5% in the third quarter, checking in at $1,545. Despite a net of 1,832 unit move-outs in the third quarter of 2016, rental demand is anticipated to be brisk during the last three months of the year. Nearly 1,730 units are expected to be absorbed in the fourth quarter.
“This well-located asset presents a great opportunity to own property in Palm Beach County, where we have previously owned hundreds of single-family homes,” said Jonathan Shechtman, portfolio manager at Axonic Properties. “We are planning significant unit and property upgrades as well.”
Located at 5101 Palm Hill Drive, Palm Hill Apartments offers one- and two-bedroom units. Ranging from 475 to 725 square feet, the residences feature fully equipped kitchens, high-speed Internet access and central air conditioning. The building includes two swimming pools, a tennis court, a basketball court and two laundry facilities.