Real estate investor Deepak Khosa paid $7.9 million for the Lake Arjaro Apartments complex in West Palm Beach, The Real Deal has learned.
DME Trust, an affiliate of Port St. Lucie-based DME Group managed by Maria Garcia and George Hartley, sold the seven buildings at 4885 Lake Arjaro Drive. Khosa, owner of Palm Beach Gardens-based Atlantic Property Services, paid roughly $138,596 per unit.
Khosa financed the purchase with a $5.5 million loan from First Bank, he said.
A Marcus & Millichap team led by Brandon Rex and Evan Kristol represented the buyer and seller.
Khosa said he plans to raise the rents from $1,200 a month to $1,600 a month at the 57-unit complex. “It’s a complete value add,” he said in a statement. “We have been buying value-add deals for the last 10-plus years and believe in it.”
In 2015, DME Trust paid $4.4 million for the complex, which was completed in 1984 and sits on more than 5.5 acres.
Khosa’s firm owns a portfolio of multifamily, hotel and retail properties in Lee, Collier, St. Lucie, Broward, Palm Beach and Miami-Dade counties.
In February, Khosa picked up the Seaspray Inn and Beach Resort on Singer Island for $8.1 million. The previous owner, Seaspray Resort Ltd., had filed for bankruptcy. Khosa’s company bought the 50-key hotel at 123 Ocean Avenue in Palm Beach Shores from the lender.
In 2019, Khosa’s Miami Condo Holding Company LLC bought an apartment complex built in 1978 in northeast Miami-Dade for $7 million. He paid about $110,000 per unit for the 64-unit complex at 750 Northeast 195th Street.
Palm Beach County has experienced an uptick in multifamily sales in recent months.
Earlier this month, Grand Peaks Properties sold Uptown 22, a renovated 252-unit multifamily property at 2210 North Australian Avenue in West Palm Beach, for $41.4 million. The buying entities are managed by Jacques Schmidt and Abraham Weber, who are with computer systems design firm Schweb Partners, based in Jackson, New Jersey.
In February, ZOM sold a recently developed 196,683-square-foot complex at 1990 Augustine Road in West Palm Beach for $48.3 million. Three entities managed by Samuel A. Raia, the principal of Ramsey, New Jersey-based Raia Properties, paid $269,832 per unit for the 179-unit development.