Housing development company Cortland has sold a garden apartment complex in West Palm Beach, Florida, for USD 208 million, according to real estate records. This transaction is one of the largest multi-family home sales in South Florida this year, yet it represented a discount for the Atlanta-based seller.
Fairfield Residential acquired the 812-unit property, known as Portofino Place Apartments. The property comprises 34 three-storey buildings on nearly 40 acres of land at 4400 and 4600 Portofino Way, situated between North Military Trail and Interstate 95.
The purchase price equates to approximately USD 256,200 per residential unit and was processed via two deeds. One, valued at USD 108 million, covered 416 units built in 2003. The other, valued at USD 100 million, concerned the remaining 396 apartments completed in 2006. The buyer secured financing of just over USD 178 million by assuming two loans with outstanding debts of USD 93.1 million and USD 85 million, respectively. Both loans, secured by Freddie Mac, are due to expire in September 2033.
Background and Market Development
Cortland had acquired the complex in 2021, at the peak of the pandemic and amidst sharply rising rents, for a total of USD 229 million. The loss of nearly USD 20 million is likely due in part to the slowdown in rental price development since then.
This latest sale follows another significant transaction by Cortland. In May, the company sold the 456-unit Uptown Boca Villas property for USD 240 million to the real estate investment arm of The Church of Jesus Christ of Latter-day Saints. This deal remains the largest multi-family home sale in South Florida this year to date.
Transaction Details
- —Seller: Cortland
- —Buyer: Fairfield Residential
- —Purchase Price: USD 208 million
- —Number of Units: 812
- —Location: 4400 and 4600 Portofino Way, West Palm Beach, Florida
Representatives for Cortland and Fairfield Residential did not immediately respond to requests for comment.
