Lake Worth, FL – July 12, 2011 – (RealEstateRama) — Israel-based group, PC Townhomes, LLC, purchased Palm Club Apartments for $7.8 million. With 160 units, the price paid for the Lake Worth townhome community amounted to $48,750 per unit.
“South Florida’s multifamily market has witnessed strong investment activity over the last 15 months,” said Calum Weaver, a sales professional with CB Richard Ellis (CBRE) in Miami. “Most of this activity has been in institutional Class A and B assets. However, as a lack of product intensifies competition between investors, buyers are pushed to expand their search parameters. As a result, we are seeing increased investor confidence in more private oriented, mid-market properties.”
Weaver continued, “We believe the trend for increased activity on B and C product will grow. As yields on premier assets compress, ‘less than premier’ assets will look more attractive to investors. Meanwhile, lenders will become increasingly receptive to the second and third tier product as the market continues to reflect positive signs of recovery.”
With an increase in Class B and C properties trading, Weaver sees this as “a clear manifestation of improved market fundamentals and confidence in the South Florida market.”
Weaver, along with CBRE’s Richard Tarquinio and Robert Given of CBRE’s Multi-Housing Group in South Florida, marketed Palm Club for sale on behalf of a court-appointed receiver.
Commenting on the purchaser, CBRE’s Richard Tarquinio points to an increase in foreign capital. “Nearly one-third of the 49 transactions our team negotiated since 2009 have been completed with a foreign buyer,” said Tarquinio. “Overseas capital is actively searching the South Florida multifamily market.”
Palm Club Townhomes, located at 2425 2nd Avenue North, was 90% occupied at the time of closing. The two-story, wood frame townhomes were built in 1993.
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.
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