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Dermot Co. pays $143M for Boynton Beach apartments

Buyer financed purchase with $84M loan

Dermot Company's Stephen Benjamin with Seabourn Cove at 3501 North Federal Highway (Linkedin, Google Maps, Seabourn Cove)
Dermot Company's Stephen Benjamin with Seabourn Cove at 3501 North Federal Highway (Linkedin, Google Maps, Seabourn Cove)

Dermot Company paid $143 million for an apartment community in Boynton Beach, a record for 2021 and one of the most expensive multifamily deals in more than a year.

Property records show Heitman Capital Management affiliate Hart Seabourn Cove sold the 308-unit community at 3501 North Federal Highway and the 148-unit second phase at 3480 Old Dixie Highway to Seabourn Cove Holdings LLC, which is linked to New York-based Dermot.

The buyer financed the purchase with an $84 million mortgage from TIAA, records show. The Boynton Beach community sold for about $314,000 per unit.

Chicago-based Heitman paid $78.5 million for the larger property, a 15.6-acre site, in December 2012, the same year Seabourn Cove was completed. It paid $30.1 million for the second phase, a 7.4-acre property, in June 2013, also the same year it was completed.

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RKW Residential is managing Seabourn Cove, according to its website. The community has two resort-style pools, a fitness center, business center, dog park and more. It has one-, two- and three-bedroom apartments ranging from 888 square feet to 1,719 square feet.

Heitman has more than $42 billion in assets under management.

Dermot Company, led by managing partner and CEO Stephen Benjamin, has the bulk of its multifamily properties in New York City, as well as in North Carolina, according to its website.

The sale is the third most expensive apartment community to trade since at least 2019. Last year, the top sale was the $180 million trade of a 555-unit complex in Fort Lauderdale.

In December, Magellan Development Group sold the Midtown Five apartment tower to Sterling Equities for $154 million.

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