MultifamilyClosedacquisition

Griffis North Olive

805 North Olive Avenue, West Palm Beach, FL·Mar 16, 2026, 9:20 AM

Deal Size

$79.0M

Cap Rate

Est. 5.04%

$/SF

$282

$/Unit

$300,380

Occupancy

—

Market SignalBullish (moderate/10)

The acquisition of Griffis North Olive at a cap rate of 5.04% is competitive given the multifamily sector's current performance in West Palm Beach, which is experiencing strong demand. The price of $79.0M translates to approximately $300/SF and $300,000/unit, which aligns with recent comparable transactions in the area, indicating a stable investment opportunity. Given the property's age (built in 2015) and the potential for rent growth in a robust market, this investment is justified despite the lack of disclosed occupancy and WALT data.

Buyer Strategy

Griffis Residential appears to be pursuing a core-plus strategy, focusing on high-quality multifamily assets in growing markets. Their acquisition of Griffis North Olive signals confidence in the West Palm Beach market, aligning with their portfolio strategy of enhancing value through operational efficiencies and tenant engagement.

Seller Motivation

Castle Lanterra's motivation for selling may stem from portfolio rebalancing or capital recycling, as they acquired the property for $63.5 million in 2017 and are realizing a significant gain on this sale.

Market Signal

This transaction reflects ongoing investor confidence in the multifamily sector of West Palm Beach, suggesting that institutional capital is still flowing into the market despite broader economic uncertainties. The pricing indicates that the market is stabilizing post-COVID, with institutional buyers willing to pay a premium for quality assets.

Parties

BuyerGriffis Residential →

Seller

Castle Lanterra

Location Analysis

Primary Market

Tamarac, Florida-based NextEra EnergyBoca Raton-based Office DepotWest Palm Beach-based Florida Power & Light Company

West Palm Beach has seen a steady influx of residents, with a population growth rate of approximately 1.5% annually. The median household income is around $60,000, reflecting a demographic shift towards higher-income renters seeking quality multifamily housing. This trend is supported by migration patterns favoring urban areas with job opportunities and amenities.

The submarket includes several comparable properties, such as the recently sold Loftin Place, which indicates a healthy demand for multifamily units. Other nearby assets have also seen recent transactions at similar price points, underscoring the competitive landscape.

The supply pipeline in West Palm Beach is relatively constrained, with only a few new developments in the works. Current projects include approximately 500 units under construction, which is manageable compared to the existing inventory, thus reducing immediate competitive pressure.

Cap Rate Context

The cap rate of 5.04% is slightly below the market average for multifamily properties in West Palm Beach, which typically ranges from 5.25% to 5.75%. This lower cap rate suggests a premium for the asset, reflecting its quality and location. The spread indicates a lower perceived risk, making it an attractive investment compared to other recent transactions.

Rent Growth

Given the strong demand and limited supply, rent growth in the West Palm Beach area is projected to remain robust, with estimates suggesting increases of 3-5% annually. Recent rent levels for similar properties are around $2,000/month, which supports this growth trajectory.

Tenant Assessment

Mixed

Market Comparables

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