Cottonwood Communities Inc., a publicly registered non-traded real estate investment trust, has purchased Luma at West Palm Beach, a 245-unit multifamily community located in West Palm Beach, Florida for $67 million.
Completed in 2018, Luma is located five miles west of Palm Beach International Airport and is comprised of a mix of one-, two-, and three-bedroom units with an average size of 1,122 square feet. Property amenities include gated access, heated resort-style pool with cabanas, fitness center, 5,500-square-foot clubroom, business center and dog park.
In conjunction with the acquisition, a $36 million loan was secured through Fannie Mae, representing a 54 percent loan-to-purchase price ratio, with a 10-year term at a 3.93 percent fixed rate, interest only for the full-term.
“We are pleased with our first acquisition,” said Enzio Cassinis, CEO of Cottonwood Communities. “We believe that the acquisition of Luma aligns very nicely with our philosophy of investing in quality assets and enduring locations using a conservative leverage strategy.”
Major employers in the area include Florida Power & Light’s national headquarters, the Scripps and Max Planck Research Institutes, Palm Beach Atlantic University, Palm Beach Gardens Medical Center, Wellington Regional Medical Center, Palms West Hospital, Pratt & Whitney and United Technologies.