Construction financing totaling $77.5 million has been secured for Arbor House, a significant new luxury multifamily development planned for Palm Beach Gardens, Florida. The project, which will feature 302 units across a 13-story building with an integrated parking garage, marks a substantial investment in the rapidly growing South Florida region.
Key Takeaways
- A $77.5 million construction loan has been finalized for Arbor House, a 302-unit luxury apartment complex in Palm Beach Gardens.
- The development will include a mix of studio to three-bedroom units, with 10% designated as workforce housing.
- Premium amenities such as a wellness center, fitness facility, golf simulator, and resort-style pool are planned.
- The project is strategically located near Downtown West Palm Beach, a hub for major financial institutions.
Arbor House Development Details
Arbor House is set to rise 13 stories and will include an attached eight-story parking garage with 480 spaces. The development will offer a diverse range of residences, from studios to three-bedroom apartments, with an average unit size of 956 square feet. Notably, 10% of the units will be designated as workforce housing, available at 120% of the Area Median Income (AMI).
The project emphasizes high-end living with an extensive amenity package. Residents can expect a 7,000-square-foot amenity deck on the eighth floor, featuring a wellness center, a state-of-the-art fitness center, a golf simulator, a cold plunge, a sauna, and a resort-style pool. A ground-floor work-from-home lounge will also be available.
Strategic Location and Market Dynamics
Located at 11200 RCA Center Dr., Arbor House boasts a prime position with a commute of under 15 minutes to Downtown West Palm Beach. This area has seen significant growth in prestigious financial institutions, including Morgan Stanley, Wells Fargo, Merrill Lynch, Goldman Sachs, Elliott Management, and Point72, since 2022.
Palm Beach Gardens is experiencing robust population and economic expansion, with Palm Beach County identified as the fastest-growing county in South Florida. The submarket has seen limited new Class A apartment deliveries since 2019, contributing to a substantial 41% increase in market rents since 2020, now averaging $2,671 per month. Elevated home prices in the region, which have risen by 70.9% since 2020, are further bolstering demand for quality rental properties.
Financing and Investment Opportunity
JLL Capital Markets arranged the $77.5 million, four-year, floating-rate loan on behalf of the borrower from a publicly traded real estate investment company. Senior Managing Director Mona Carlton, Director Joshua Odessky, and Analyst Michael Romero led JLL’s Debt Advisory team. Odessky highlighted Arbor House as a compelling value creation opportunity in a market with high barriers to entry and limited new supply. He noted the significant rent growth and the arbitrage between renting and owning, positioning the transit-oriented development to attract demand from the influx of financial services professionals to West Palm Beach.