Real Estate

Related Sells Boynton Senior Complex for $53M Amid Housing Crunch

Smith & Henzy buys Boynton Beach senior housing for $53M, signaling a boost in affordable living amidst a housing crisis.

By Doug Elli

4/3, 17:48 EDT
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Key Takeaway

  • Smith & Henzy Advisory Group acquires Boynton Beach senior housing complex for $53M, signaling strong investor interest in South Florida's affordable housing.
  • The sale price equates to $220,833 per unit; the firm plans renovations, highlighting ongoing investment in enhancing affordable living spaces.
  • Amid a regional affordable housing shortage, legislative incentives and high demand drive developer and investor activity in below-market rate units.

A Fresh Horizon for Affordable Senior Living

Smith & Henzy Advisory Group's recent acquisition of the Boynton Bay Apartments in Boynton Beach for $53 million from the Pérez family’s Related Group marks a significant development in the affordable housing sector, particularly for seniors. This transaction not only highlights the growing interest in affordable senior living facilities but also underscores the strategic moves by developers to cater to this demographic amidst a broader housing affordability crisis. The sale, breaking down to $220,833 per unit, coupled with Smith & Henzy's plans for renovations, signals a commitment to enhancing the value and appeal of affordable senior housing.

Strategic Investments Amidst Housing Challenges

The acquisition and planned renovations by Smith & Henzy reflect a broader trend of strategic investments in affordable housing, particularly in South Florida's tight market. The region has seen an influx of investors and developers like New York-based Related Companies and Dallas-based Trinsic Residential Group, betting on the affordable housing market. This surge is driven by the acute shortage of below-market rate units, exacerbated by record rent hikes due to demand from affluent out-of-state newcomers. Florida's Live Local Act, aimed at alleviating this shortage by incentivizing the construction of affordable units, further sets the stage for developments like Boynton Bay Apartments.

The Broader Impact on South Florida's Housing Landscape

Smith & Henzy's acquisition is emblematic of a larger movement towards addressing the affordable housing crisis in South Florida. With a portfolio boasting $1.6 billion of financed and developed projects, Smith & Henzy's focus on affordable housing development, including the recent Boynton Bay Apartments purchase, plays a crucial role in mitigating the region's housing challenges. This move, alongside other developments like Trinsic Residential Group's planned 340-unit affordable apartment building in Fort Lauderdale, indicates a growing recognition of the need for affordable housing solutions in the face of escalating rents and a tight housing market.

A Vision for Affordable Senior Living

The Boynton Bay Apartments transaction by Smith & Henzy not only addresses the immediate need for affordable senior housing but also reflects a broader vision for the future of living spaces for the elderly. By focusing on renovations and improvements, Smith & Henzy is poised to enhance the quality of life for residents, ensuring that affordable housing does not compromise on comfort and amenities. This approach aligns with the increasing demand for senior living facilities that offer a blend of affordability, accessibility, and quality living conditions, setting a precedent for future developments in the sector.