Related Buys First South Florida Property Since Stephen Ross Spinoff
Related Cos. isn’t done with South Florida just yet.
An affiliate of Related Fund Management, New York-based Related's asset management arm, purchased a 292-unit apartment complex in Delray Beach from developer Trinsic Residential Group for $116M, according to property records provided by Vizzda.
It was the first acquisition of a South Florida property by a Related Cos. entity since the company spun out its West Palm Beach holdings into Related Ross last year, according to a Vizzda analysis. Related Ross is led by Related Cos.' founder, Stephen Ross, who stepped down as the parent company's chairman to launch the new firm.
Related Fund Management financed the Palm Beach County purchase with a $59M Freddie Mac loan originated from Berkadia that matures in 2035.
Dallas-based Trinsic, which declined to comment on the sale, acquired the site in January 2021 for $11.3M and broke ground on the complex nine months later, the South Florida Business Journal reported at the time.
Trinsic finished construction on the 325K SF apartment community in 2023, delivering four five-story buildings, two three-story buildings and a two-story clubhouse on an 11-acre lot at 2095 W. Atlantic Ave.
Dubbed Aura Delray Beach, the complex features studio, one-, two- and three-bedroom apartments ranging from 651 to 1,374 SF and priced between $2,350 and $3,970, according to Apartments.com.
Residents have access to games in the clubroom, a playground, a dog park and pet spa, a coworking area, private office pods that are rentable on a monthly basis, a fitness center and a yoga and spin studio.
Trinsic has developed more than 20,000 units across the country, with properties in Arizona, Colorado, Texas, North and South Carolina, Virginia and Florida, according to its website.
The multifamily developer is currently building the 373-unit Aura North Miami Beach in partnership with Macken Cos. It signed five new retail tenants for the 522K SF development, including Florentin Bakery and Pala Mediterranean Kitchen, last week.
Related, led by CEO Jeff Blau and President Bruce Beal Jr., made its last purchase in South Florida in 2023 when it bought the Sorrento at Miramar apartments for $48M, according to Vizzda. Spokespeople for Related didn't respond to Bisnow's requests for comment.
That was before the creation of Related Ross last year, led by Ross as CEO. Ross has been active in South Florida real estate since the 1970s and owns the Miami Dolphins NFL franchise, but only recently began to hone in almost exclusively on West Palm Beach.
The billionaire developer plans on investing $10B to reposition the area into "Wall Street South" by developing and planning numerous projects in residential, office and retail components across Palm Beach County.
The first project Ross delivered after his spinoff was the One Flagler luxury office tower, which opened doors 95% leased in February. It also landed a $600M construction financing package in June for its first luxury condo project, South Flagler House.
Related Fund Management has still been active in South Florida, just not as a buyer. Last year, it provided a mezzanine loan to a Wynwood condo project, partnered on a $668M financing package for the Waldorf-Astoria supertall in Miami and sold the W Hotel Fort Lauderdale to Blackstone.
