An Affiliate of London and Regional Properties Acquired the 79-Unit Asset in Section 363 Bankruptcy Sale
The Cushman & Wakefield South Florida Multifamily Team of Robert Given, Errol Blumer, Robert Kaplan and Michael Mulkern represented 160 Royal Palm, LLC, a court-appointed receiver managed by former Delray Beach Mayor Cary Glickstein, in the disposition. U.K.-based investor and developer London and Regional Properties acquired the 79-unit asset for $39.6 million ($501,266 per unit).
The Palm House Hotel is located on a 1.38-acre site at 160 Royal Palm Way on Palm Beach Island. The 82,648-square-foot project was initially developed in 1961 and expanded in 1981. In 2006, significant renovations were started at the property, but were halted in 2014. The property is currently vacant.
The Palm House Hotel is located less than one block from the Atlantic Ocean in one of South Florida’s wealthiest zip codes (33480), which boasts an average adjusted gross income of $1.25 million. Residential sales in the immediate vicinity regularly exceed $1,000 per square foot.
“The Palm House Hotel represented an intriguing investment opportunity in one of world’s premier travel destinations,” said Given. “The auction process attracted a global audience of qualified bidders and helped achieve exceptional value for the seller.”
The Palm House acquisition represents London and Regional Properties’ first foray into the U.S. market. The company has an extensive global portfolio.
“London and Regional Properties’ extraordinary track record of developing luxury resorts in markets around the world will serve them and the Palm Beach community well as they move to restore and reposition the asset,” said Blumer.
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