Construction financing totaling $77.5 million has been secured for Arbor House, a new 302-unit luxury multifamily development in Palm Beach Gardens, Florida. JLL Capital Markets facilitated the four-year, floating-rate loan through a real estate investment company. This funding marks a significant step forward for the project, which aims to address the growing demand for high-quality rental housing in the rapidly expanding Palm Beach County.
Key Takeaways
- $77.5 million in construction financing secured for Arbor House.
- The development will feature 302 luxury apartment units.
- Located in Palm Beach Gardens, a rapidly growing area in South Florida.
- JLL Capital Markets arranged the financing.
Arbor House Development Details
Arbor House will be a 13-story building featuring an attached eight-story parking garage with 480 spaces. The development will offer a diverse range of units, from studios to three-bedroom apartments, averaging 956 square feet. Notably, 10% of the units will be designated as workforce housing, available at 120% AMI. Residents will have access to extensive amenities, including a 7,000-square-foot amenity deck on the eighth floor. This deck will house a wellness center, a state-of-the-art fitness center, a golf simulator, a cold plunge, a sauna, a resort-style pool, and a ground-floor work-from-home lounge.
Strategic Location and Market Demand
Strategically situated at 11200 RCA Center Dr., Arbor House boasts a prime location within a 15-minute commute to Downtown West Palm Beach. This area has seen significant economic growth, attracting major financial institutions. Palm Beach County is recognized as the fastest-growing county in South Florida, with limited new Class A multifamily deliveries since 2019. This supply constraint, coupled with a 41% increase in market rents since 2020 to an average of $2,671 per month, has fueled demand for quality rental properties. The substantial rise in home prices in the region further strengthens the appeal of rental options like Arbor House.
Financing Facilitation
JLL Capital Markets’ Debt Advisory team, led by Senior Managing Director Mona Carlton, Director Joshua Odessky, and Analyst Michael Romero, represented the borrower in securing the financing. Odessky highlighted Arbor House as a "compelling value creation opportunity in a supply-constrained, high-barrier-to-entry submarket." He further noted that the development’s superior unit mix and amenity package are well-positioned to capture significant demand from the influx of financial services professionals relocating to West Palm Beach.