The Shidler Group, a family office associated with Hawaii-based real estate mogul Jay Shidler, has taken a $90.5 million refinancing package for Sealofts at Boynton Village, a 433-unit luxury community in Boynton Beach, Fla. Wells Fargo provided the 35-year mortgage with a fixed interest rate of 3.54%, documents recorded with Palm Beach County indicate.
The new financing comes only two months after South Florida Business Journal reported Shidler’s purchase of the asset for $153 million, or approximately $353,000 per unit, from a joint venture between Rockpoint Group and Morgan Group. The seller had only finished developing the property last year. Webster Bank backed that sale with a now-retired $53.6 million loan.
Located on 19 acres at 600 SeaLofts Drive, the community is about 10 miles north of Boca Raton, just east of Washington Prime Group’s 870,000-square-foot Boynton Beach Mall. The property consists of several four-story buildings with a range of one- to three-bedroom units, and a high-end amenity mix. In addition to a rentable conference room, a swimming pool, and an indoor sport court, the community also offers electric vehicle-charging stations, valet trash service, and an outdoor yoga and meditation area.
High Growth Potential
Like many other Sunbelt metros, the wider West Palm Beach multifamily market has soared to new heights in the past year. Ranking fourth in Marcus & Millichap’s 2022 U.S. Multifamily Investment Forecast, the market has benefited — and continues to benefit — from strong population growth, particularly in the 20s-to-mid-30s cohort. At the start of this year, the employment situation had already bounced back higher than before the pandemic, as well.
The market has plenty of multifamily investment opportunities, both at the high end — as can be seen with Shidler’s acquisition — and with a wealth of value-add opportunities which can be upgraded to meet the growth in demand for upscale units. This demand has been driven, in large part, by an influx in corporate expansions and relocations in the area. Alongside Goldman Sachs’ major expansion in West Palm Beach — and Colony Capital (now rebranded as DigitalBridge) shifting its headquarters from Los Angeles to Boca Raton — many smaller companies have also grown their presence in the market.