By Mike S Payton, Contributing Reporter
DELRAY BEACH, FLORIDA – In a deal that started in the early days of 2020, before the coronavirus pandemic, Atlanta-based Cortland Partners paid $73.9 million for the Delray Station apartment complex in Delray Beach.
Depot Station was built in 2017 and consists of seven, three-story buildings with one-, two- and three-bedroom units. Kyle Bateh, Cortland’s Director of Investments, Florida, explained, “Delray Station – now Cortland Delray Station – represents an incredible opportunity.”
“The community’s location with its adjacency to Atlantic Avenue and quick access to Delray Beach and I-95 offers residents convenient proximity to both major employers and the arts/entertainment district,” he said.
Adding, “This is a deal we started pursuing early this year, prior to the pandemic, and we are thrilled to be bringing the Cortland brand to our fourth apartment community in South Florida.”
Cortland Partners paid $73.9 million for the apartment complex, marking one of the largest multifamily deals in South Florida since the start of the pandemic, according to The Real Deal. They also reported that Cortland secured a $37 million loan from Walker & Dunlop to acquire the complex.
Monthly rents range from $1,545 to $2,752, according to Apartments.com, and the real estate investment firm bought the 284-unit complex at 203 Depot Avenue for $260,211 per unit.
Bateh said, “Although the community is already a stellar asset, we do plan to make a few light updates in the near term, including expanding the package lockers and upgrading the bike storage room with more storage racks and a work bench with tools and air pumps.”
Explaining, “People in this area love to bike, and this is just one small way we can enhance the resident’s living experience through our hospitality-driven approach and commitment to putting residents first.”
In terms of affordability, he said, “We also recognize that this is a unique and complicated time for many renters, and we were particularly drawn to this community given the percentage of units dedicated to workforce housing, which are available to more moderate income families.”
“We see this as an opportunity to address an underserved segment of the population when it comes to rental housing, especially in more affluent areas like Delray Beach and Boca Raton. We look forward to serving the residents of Cortland Delray Station and the greater community through our dedication to providing excellent living experiences.”
According to a new report from Apartment List, rents in Delray Beach decreased by 0.2 percent month-over-month, and are down 3.1 percent since the start of the pandemic in March. Year-over-year rent growth in Delray Beach currently stands at 0.2 percent, the lowest rate in July of any year since 2016.
Cortland was founded in 2005 with a focus on multifamily development, but pivoted during the recession to focus on acquiring and renovating existing multifamily projects, according to its website.