Palm Beach Gardens is set to welcome Arbor House, a new 302-unit luxury multifamily development, following the successful arrangement of $77.5 million in construction financing. This significant funding marks a key milestone for the project, which aims to bring high-rise apartment living to the area, addressing a growing demand for quality rental housing.
Key Takeaways
- A $77.5 million construction loan has been secured for Arbor House, a 302-unit luxury apartment complex in Palm Beach Gardens.
- The development will feature a 13-story building with premium amenities and a mix of studio to three-bedroom units.
- The project is strategically located near West Palm Beach’s financial district and benefits from strong regional growth.
Arbor House Development Details
Arbor House will rise 13 stories, complemented by an eight-story attached parking garage offering 480 spaces. The development will comprise 302 units, ranging from studios to three-bedrooms, with an average 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 boasts an impressive amenity package designed to enhance resident living. An expansive 7,000-square-foot amenity deck on the eighth floor will include 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
Located at 11200 RCA Center Dr., Arbor House offers a convenient commute to Downtown West Palm Beach, a hub for major financial institutions. The Palm Beach Gardens submarket is experiencing robust population growth and strong economic fundamentals, with Palm Beach County being the fastest-growing county in South Florida. Since 2019, there have been limited deliveries of Class A apartment buildings in the area, contributing to a significant increase in market rents, which have risen 41% since 2020 to an average of $2,671 per month.
This demand is further fueled by elevated home prices in the region, which have seen a 70.9% increase since 2020, making quality rental options increasingly attractive.
Financing and Development Team
JLL Capital Markets arranged the four-year, floating-rate loan on behalf of the borrower. The JLL Capital Markets Debt Advisory team was led by Senior Managing Director Mona Carlton, Director Joshua Odessky, and Analyst Michael Romero. Odessky highlighted Arbor House as a "compelling value creation opportunity in a supply-constrained, high-barrier-to-entry submarket," emphasizing its potential to capture demand from the influx of financial services professionals to West Palm Beach.
Aventine Development and Seawood Builders are leading the development. Phase II of Arbor House is planned to include a second 13-story tower with 318 apartments, bringing the total to 620 units upon completion. This expansion aligns with a broader master plan to revitalize the area with modern, high-quality residential options.