Estate Cos. pays $13M for West Palm Beach apartment site

Estate Cos. paid $13 million for the land for its next West Palm Beach tower. Connect CRE reported the price, crediting the South Florida Business Journal. The 1.19-acre parcel at 411 West Railroad is the staging ground for the second phase of a two-phase apartment project.

Sunview Cos. sold the parcel. Banesco USA supplied an $8.45 million mortgage, covering about 65% of the land price. That values the land at roughly $10.9 million an acre.

Estate Cos. plans a 15-story tower on the site. Soleste Palm Station Two would hold 310 apartments. The design includes 411 parking spaces and a pool deck. The new building would rise just east of the first phase, Soleste Palm Station. That structure is eight stories and remains under construction. It has 321 units.

The adjacent Soleste buildings will total 631 apartments. The new tower climbs to 15 stories, a substantial density increase. Estate Cos. says it identifies and coordinates South Florida land and residential investments for private and institutional investors, a focus since 2012. It is adding the second building before the first has finished.

The mortgage covers land, not construction. The developer still has to fund the build-out while Banesco holds a secured position on a site that has not started. Land loans are a standard way to start construction, but this one places the tower in the lease-up stage where this publication has argued repricing pressure will concentrate. Stabilized West Palm Beach assets may still clear at benchmark prices. A tower rising beside an unfinished first phase sits outside that group. The buyer is borrowing against unbuilt ground, betting that absorption keeps pace through delivery. If it does not, the risk stays on the lender's books — repricing without a headline.