News Summary
Griffis Residential has acquired Anya, a 223-unit high-rise in West Palm Beach, for $87 million, marking its first venture into the South Florida market. The deal includes retail space and offers diverse apartment types with competitive rental prices. The acquisition aligns with Griffis Residential Income Trust’s strategy to enhance its multifamily portfolio, targeting high-quality properties in economically promising regions. This move highlights the ongoing investment potential in the South Florida market, particularly amid strong interest from other buyers despite current slow transaction activity.
Florida – Griffis Residential has successfully acquired Anya, a 223-unit high-rise in West Palm Beach, for a total of $87 million. The deal marks the company’s inaugural entry into the South Florida real estate market, demonstrating a robust investment in a region known for its economic and demographic growth.
The acquisition, finalized from Northwestern Mutual Life Insurance Co. and Woodfield Development, also encompasses 3,132 square feet of retail space integrated into the residential complex. Built in 2023, the property has been rebranded as Griffis West Palm, aligning it with the company’s existing portfolio. The newly named complex offers a variety of apartment types, ranging from studio units to three-bedroom configurations, with sizes ranging between 535 and 1,579 square feet.
Rental prices at Griffis West Palm vary between $2,495 and $7,295, appealing to a wide range of potential tenants. Residents will benefit from a comprehensive suite of amenities including a year-round resort-style pool with cabanas, coworking pods, an outdoor yoga studio, outdoor grilling stations, and a rooftop deck. Fitness enthusiasts will appreciate a 24-hour fitness center featuring a spin room, along with added conveniences such as electric vehicle charging stations and package lockers.
This acquisition is part of the ongoing strategy of the Griffis Residential Income Trust, a multifamily fund that was launched in 2020. The recent acquisition represents the ninth property added to the Trust’s growing portfolio. The transaction was facilitated through a 10-year, fixed-rate, interest-only financing structure, underscoring the strategic financial planning utilized for the investment.
Griffis Residential has established a strong presence in the property management sector, currently owning and managing approximately 8,000 units and overseeing an asset portfolio valued at about $3.2 billion across ten different markets. The company’s acquisition strategy focuses on securing high-quality, core apartment properties situated in regions characterized by favorable economic and demographic trends.
In assessing the decision to purchase Griffis West Palm, company executives highlighted the resilient fundamentals and income-generating potential of the West Palm Beach area. This area is perceived as conducive to stable cash flows and long-term value appreciation, aligning with the overall aims of the investment entity.
The property garnered considerable interest from buyers, as indicated by the competitive bidding environment. Several pension fund advisers actively sought the asset, drawn by the prime location and the evident growth trajectory in Palm Beach County. However, despite the strong interest, the multifamily transaction landscape currently demonstrates slower activity than desired. This includes a limited number of transactions occurring in prime locations, typically characterized by cap rates under five percent.
In conclusion, the acquisition of Griffis West Palm not only enhances the portfolio of Griffis Residential but also highlights the ongoing investment appeal of the South Florida market, particularly within the multifamily residential sector.
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