Boynton Beach Attracting Multifamily Investors

PALM BEACH—Colony Club has a new name and a new owner. Multifamily real estate investment firm Advenir has snapped up the apartment community, renaming it Advenir at Boynton. Advenir paid $26.65 million for the 214-unit, class A multifamily property in Boynton, a submarket of Palm Beach.

“Advenir at Boynton is the newest built property in the submarket,” Todd Linden, chief acquisition officer of Advenir, tells GlobeSt.com. “We received a $10,000 per unit discount for comparable product due to the mismanagement by the seller.”

Linden went on to say that Advenir was attracted to the multifamily asset because of the management upside, significant value to replacement cost, strong market fundamentals and lack of new construction. The firm is actively looking to acquire more stabilized income producing multifamily assets in markets where there is an outlook for healthy economies, positive employment growth, and in-migration.

“The Boynton Beach multifamily market has seen 6% effective rent growth year over year,” Linden says. “There are two quality assets being marketed currently with whispers that two more will be for sale in the near term. Market rate A and B assets are highly competitive. Current construction is scarce in South Florida. There are a significant amount of planned projects, as well as development opportunities being marketed.”

Advenir will implement a capital improvement program for this property focused on beautifying the exterior of the buildings and upgrading the multifamily community amenities. The firm will paint the entire multifamily property, update the leasing center and clubhouse, and add WiFi.

Advenir at Boynton is 84% leased while the market is at 94% leased. “We don't see any challenges in raising the occupancy,” Linden says. “After a few short weeks of ownership we have gone from 78% to 90% occupied. Our management team excels at turning struggling properties around within the first 90 days of acquisition.”