Cottonwood Communities Inc., a publicly registered non-traded real estate investment trust, plans to purchase Luma West Palm Beach, a 245-unit Class A multifamily property located in West Palm Beach, Florida, for $67 million. The transaction is expected to close during the second quarter of 2019.
Completed in 2018, Luma is located five miles southeast 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, a heated pool with cabanas, fitness center, 5,500-square-foot clubroom, business center and dog park.
“The West Palm Beach area is attracting professionals in well-paying jobs and a significant population of retirees – individuals which we believe are often renters by choice,” said Enzio Cassinis, CEO of Cottonwood Communities. “Luma is a high-quality multifamily asset in a highly trafficked location and represents an exciting first investment opportunity for the company.”
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, and United Technologies.
Cottonwood Communities launched its $750 million offering in August 2018 to invest primarily in multifamily properties throughout the United States and raised $9.4 million in investor equity, as of February 2019. Shares are priced at $10.00 each, and all offering-related expenses will be paid by the REIT’s advisor without reimbursement.