Tortoise Properties scored an $88.5 million construction loan for a multifamily project in downtown West Palm Beach.
The real estate investment firm plans a pair of eight-story buildings with 264 units at 740 and 840 North Dixie Highway, according to Tortoise’s news release. Larkspur, California-based Acore Capital is the lender.
Tortoise obtained the development permits and approvals from the city soon after buying the 2.5-acre vacant site in December for $18.8 million. The property is on both the north and south sides of Eucalyptus Street.
The MSA Architects-designed project will have 371 parking spaces and more than 3,400 square feet of retail fronting Dixie Highway, according to the release. An overpass with floor-to-ceiling glass windows will connect the two apartment buildings across Eucalyptus Street. The project will offer studios, and one- and two-bedroom apartments.
Tortoise, based in West Palm Beach, is led by CEO Jake Geleerd and Chairman Kelly Brannen, both co-founders. In other South Florida investments, Tortoise, along with Pebb Enterprises, paid $31.5 million for the Jupiter Innovation Center at 1701 Military Trail in Jupiter in 2020.
Tortoise is the latest to bet on downtown West Palm Beach. In recent months, as the area captured some of the influx of financial firms to South Florida, Stephen Ross’ Related Companies bought the majority of the Class A office space in downtown West Palm, completed the Rosemary Square tower and embarked on a second office project.
Multifamily development has followed the offices. Arnaud Karsenti’s 13th Floor Investments, in partnership with Wexford Real Estate Investors and L&L Holding Company, proposes the 25-story Residences of Palm Beach West with 372 apartments and a grocery store. The three-way venture paid $26.1 million in September for the site between Fern and Gardenia streets, and between Quadrille Boulevard and South Dixie Highway.
Miami-based Place Projects and West Palm Beach-based NDT Development are working on the redevelopment of a 40-acre area in the northern end of downtown that they have anointed the Nora District. The duo worked with the city on a zoning overhaul that allows for a mix of uses with varying heights in different parts of the district.
In another mixed-use development wager, a venture among Starwood Capital Group, Hyperion Group and Winter Properties plans a 22-story, 457-apartment building with retail at 201 Clearwater Drive in downtown West Palm.