AvalonBay Communities, a prominent real estate investment trust (REIT), has acquired a multifamily development site in Lake Worth Beach, Florida. The Arlington, Virginia-based firm purchased the 9-acre property for $16.5 million, according to public records and data from real estate database Vizzda. The site is located adjacent to a retail shopping center anchored by a Publix grocery store, which will remain in place as it was not part of the transaction. The shopping plaza, known as Northlake Promenade Shoppes, occupies 10,546 square feet at 374 Northlake Boulevard.
AvalonBay plans to develop the Northlake Promenade Apartments on the acquired property. The project, which has already received site plan approval from the city of Lake Worth Beach, will feature a seven-story building with 279 residential units and 448 parking spaces. The design for the development comes from Orlando-based Baker Barrios Architects. This project represents a significant step in AvalonBay’s efforts to expand its presence in Florida, where the demand for multifamily housing continues to grow.
The seller of the Lake Worth Beach site was an affiliate of Woolbright Development, a Boca Raton-based real estate company. Woolbright originally acquired the vacant land and retail center for $9.2 million in 2016, making this a profitable transaction for the firm.
AvalonBay, led by CEO Benjamin Schall, is a well-established player in the multifamily housing market. The company, which is publicly traded, owns 299 apartment communities comprising 90,673 units across 12 states and Washington, D.C., according to its website. AvalonBay has been particularly active in regions like California and Colorado. In recent months, the firm made headlines with significant transactions and developments in those states. Last month, AvalonBay purchased a 306-unit apartment complex in Denver for $95 million. Additionally, the company began construction on a five-building development near San Francisco, which will include 305 residential units.
In South Florida, AvalonBay has been part of a larger trend of institutional investors entering the multifamily housing market. Between 2021 and 2022, the firm made several major acquisitions in the region. In 2022, AvalonBay paid $295 million for two apartment complexes in Miramar, which together house 650 units. The previous year, the company acquired another Miramar property for $133 million. These transactions highlight AvalonBay’s ongoing interest in South Florida as a key market for growth, driven by the region’s increasing population and demand for rental housing.
Lake Worth Beach, in particular, has attracted the attention of other major developers as well. Atlanta-based PulteGroup is among those investing in the area. In April, PulteGroup purchased 36.5 acres of land in the city for $22 million. The developer’s Divosta Homes division plans to build Antica, a residential community with 108 single-family homes on the site. This project is one of several recent investments by PulteGroup in Lake Worth Beach. Last year, the firm acquired 27 acres nearby for $21.1 million, where it is developing Everton, a project that will consist of 210 townhomes.
These investments by AvalonBay and PulteGroup are part of a broader trend of developers and investors capitalizing on South Florida’s real estate market, particularly in areas like Lake Worth Beach that offer opportunities for both residential and commercial growth. As housing demand continues to rise in the region, projects like Northlake Promenade Apartments and Antica are expected to meet the needs of a growing population while contributing to the area's economic development.
AvalonBay’s Lake Worth Beach project will likely attract a diverse range of renters, from young professionals to families seeking modern, well-located housing options. The proximity of the Northlake Promenade Apartments to a major shopping center anchored by Publix will be an added draw for residents, offering convenient access to retail and dining options. With its solid track record of delivering high-quality multifamily developments, AvalonBay is well-positioned to make the Northlake Promenade Apartments a successful addition to its portfolio.
As South Florida’s real estate market remains competitive, AvalonBay’s continued investments in the region signal confidence in its long-term potential. The company’s ability to navigate the complexities of large-scale multifamily projects, combined with its focus on delivering value to both residents and investors, has cemented its reputation as a leader in the industry.
Posted by Larry Mastropieri on
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