Klingbeil Capital Management paid $51.8 million for the Island Reach Apartments in Boynton Beach as out-of-state investors continue to bet on Palm Beach County multifamily properties.
The Ohio-based investment firm bought the 280-unit development at 9866 Viburnum Tree Drive for $185,000 per unit, records show. The seller is affiliated with Boston-based asset manager Eaton Vance Management, which bought the property in 2010.
The apartments sit on 17.4 acres between Boynton Beach Boulevard and Old Boynton Road. Units range from one to three bedrooms with one bedrooms starting at $1,185, according to apartments.com.
Klingbeil Capital Management owns apartment properties throughout the country. It has completed about $2 billion worth of apartment acquisitions in the last 20 years, according to its website
Multifamily developers and homebuilders are increasingly becoming interested in Boynton Beach, betting that people working in Boca Raton or West Palm Beach will look for cheaper housing options in the suburbs.
In June, Mattamy Homes, the largest private homebuilder in North America, bought 30 lots in Boynton Beach for $5.48 million. The company plans to build 70 single-family homes on the site.
In August, a partnership between Houston-based Morgan Group and Boston-based Rockpoint Group bought a residential development site in Boynton Beach for $19.52 million to bring luxury multifamily development to the area.