Broadstone City Center is one of the new generation of high-end apartment buildings that have risen in West Palm Beach in recent years. Monthly rents range from $1,525 for the least expensive studio to $2,915 for the priciest two-bedroom unit.
Broadstone City Center, one of the new luxury apartment complexes in downtown West Palm Beach, just sold for $103.5 million, according to property records.
The 315-unit complex was completed in 2018. The new owner is Nuveen Real Estate of Miami. The seller was Alliance Residential of Phoenix.
Broadstone City Center is one of the new generation of high-end apartment buildings that have risen in West Palm Beach in recent years. Monthly rents at the property range from $1,525 for the least expensive studio to $2,915 for the priciest two-bedroom unit.
Those prices show developers are targeting “renters by choice” — a new niche in the housing market, one made up of tenants who can afford to buy but prefer not to own.
With mortgage rates still at rock-bottom levels, affluent consumers are able to buy. Borrowing $400,000 through a 30-year mortgage at 3.75 percent would require a monthly principal and interest payment of $1,852, significantly less than the monthly rent for a two-bedroom apartment.
Even so, Americans have cooled a bit on homeownership. The U.S. homeownership rate was 64.8 percent in the third quarter of 2019, well below the record high of 69.2 percent set in 2004. Many real estate experts say millennials will prove less likely to buy homes than their baby boomer parents, who believed that paying a landlord was akin to throwing away money.
That’ part of what’s driving downtown West Palm Beach’s apartment boom. Loftin Place, Park-Line and The Alexander — where units rent for as much as $4,000 a month — already have been completed.
There are 251 new rental units are under construction at the site of the former City Hall. And Related Cos. hopes to build a 21-story apartment complex on the site of the former Macy’s store at Rosemary Square.
The sale price of Broadstone City Center equates to nearly $329,000 a unit. In 2017, the 259-unit Loftin Place sold for $63.5 million, or $245,000 per door.
“High-quality assets in premium infill locations like Broadstone City Center continue to attract a wide variety of private, international and institutional investors,” said Hampton Beebe of Newmark Knight Frank Multifamily, the commercial real estate company that brokered the deal.
The property is 91 percent leased, Newmark Knight Frank said.