$117 Million Construction Loan for Multifamily Project in West Palm Beach’s Northwood District

A significant boost to housing development in West Palm Beach comes with the recent approval of a $117 million construction loan for a sprawling 382-unit multifamily project in the Northwood District. This ambitious development is spearheaded by Immocorp Ventures, a collaboration between Gilbert Benhamou from Immocorp Capital (based in Aventura) and Gideon Friedman of Beachwold Residential (New York-based).

Project Overview

Located at 2484 Pinewood Avenue, this expansive project will comprise three buildings: a nine-story structure alongside two four-story buildings. Key features include:

• 61,000 square feet of ground-floor space designated for retail and dining.
• An additional 22,000 square feet reserved for a grocery store or another retail anchor.

Construction Timeline

Immocorp and Beachwold began construction in 2022, initially relying on their own equity due to favorable expectations surrounding interest rates. As Benhamou mentioned in The Real Deal, the hope was to secure financing once rates dropped further.

Economic Context

The Federal Reserve’s adjustments to the benchmark rate have influenced market expectations. While there were hopes for multiple rate cuts following three reductions last year, recent projections indicate only two potential cuts for this year, largely due to economic policies from the Trump administration affecting tariffs and immigration.

Development Milestones

As of now, the Northwood project is approximately 30% completed, with an anticipated finish in the fourth quarter of next year. Leasing activities are expected to commence ahead of the completion date.

Broader Development in South Florida

Immocorp Ventures isn’t stopping here. The company is also collaborating with Kushner Companies on another significant mixed-use redevelopment project located at 19199 Northwest 27th Avenue in Miami Gardens. This site will include:

• Hundreds of multifamily units
• A hotel
• Retail and entertainment spaces

The efforts in the Northwood District are part of a larger city initiative to invigorate development. West Palm Beach officials have been working since at least 2015 to enhance the area from 23rd Street to just north of 25th Street, spanning east to South Dixie Highway.

Previous Achievements

Immocorp Ventures secured the redevelopment of a 4.3-acre Northwood site owned by the West Palm Beach Community Redevelopment Agency in 2019. By 2022, their project gained approval from the city planning board, becoming the first of its kind in the district.

Other Notable Projects in Northwood

The Northwood District is bustling with activity, as Affiliated Development, led by Nick Rojo and Jeff Burns, is constructing an eight-story, 270-unit apartment building at 2501 Spruce Avenue.

Market Trends in South Florida

Despite challenges such as higher interest rates and increased unit deliveries in the previous year, financing for multifamily projects in South Florida remains strong. Recent notable financing deals include:

• A $125 million loan secured by a partnership led by Craig Robins’ Dacra for a 20-story, 107-unit apartment tower in the Miami Design District.
• Kushner Companies garnered $115 million for a three-story, 68-unit luxury building at 9300 Collins Avenue in Surfside.

Conclusion

West Palm Beach’s Northwood District is on the cusp of transformation, with key developments led by Immocorp Ventures and its partners. As construction progresses and leasing opportunities soon arise, the area is poised to become a vibrant residential and commercial hub.

Explore more about these developments and stay informed about the evolving landscape of South Florida’s real estate market by following local news and industry reports.