Hyperion Group has secured a $108 million construction loan and formed an equity partnership with Silverstein Properties for its delayed Boynton Beach apartment project. The development, known as Ocean One, is planned as an eight-story building with 371 luxury units at 114-222 North Federal Highway in Boynton Beach. Madison Realty Capital provided the construction financing.
The deal occurs during a challenging period for South Florida’s multifamily market. In recent years, developers have completed a large number of new units, leading to slower lease-ups, increased concessions such as free rent offers, and falling average rents in the region.
Adam Doneger of Newmark represented Hyperion and Winter Properties in the equity partnership negotiations, while Jordan Roeschlaub of Newmark represented the borrowers for the construction loan. Silverstein Properties is led by Larry and Lisa Silverstein.
In January, Hyperion and Winter received additional support from local authorities when the Boynton Beach Community Redevelopment Agency (CRA) increased tax increment financing for Ocean One to $11.5 million from $9 million. This represents the largest TIF allocation ever made by the CRA. Despite this increase, Hyperion had initially requested $16 million due to rising construction costs, insurance expenses, inflation concerns, higher interest rates, and uncertainty related to tariffs.
Hyperion Group, headed by Rob Vecsler, and Winter Properties, led by David Winter, acquired the 3.7-acre site for $12 million in 2021 and obtained project approval in 2023. Completion was originally expected earlier this year.
Developers across South Florida continue to launch new multifamily projects despite slower demand growth. During the pandemic-era boom in 2024 alone, a record 18,600 units were completed across Miami-Dade, Broward, and Palm Beach counties according to CoStar data; another 12,718 units were finished last year.
Many buildings are currently offering significant leasing incentives as supply outpaces demand. However, developers remain optimistic that market conditions will improve by their projects’ completion dates. Some anticipate renewed population inflows driven by changing political dynamics elsewhere in the country.
Construction lending remains active even amid higher interest rates. For example: Clara Homes recently obtained $80 million for its third luxury apartment building on Bay Harbor Islands; Development Alliance closed on a $43.3 million loan for Nexus Leah in Hialeah; Ascentris and Zom Living are moving forward with a 380-unit redevelopment project in Doral using a $92.3 million loan.
