Berkadia Secures $38.55M Freddie Mac Refinancing for Rich Properties' Tennis Towers Apartments in West Palm Beach
WEST PALM BEACH, Fla. — Berkadia has arranged $38.55 million in refinancing for Tennis Towers Apartments, a 306-unit multifamily community in West Palm Beach that has been owned and operated by Rich Properties since the property was developed in 1990, the firm announced September 9, 2026.
The Freddie Mac-backed loan carries a seven-year, fixed-rate term and includes four years of interest-only payments before transitioning to amortization. The transaction closed August 31.
Deal Team and Structure
Mitch Sinberg, Scott Wadler, Matthew Robbins, Brad Williamson, and Jared Hill of Berkadia's Miami and Boca Raton offices arranged the financing on behalf of sponsor Rich Properties.
At $38.55 million against 306 units, the loan equates to roughly $126,000 per unit, a figure that sits below estimated replacement cost for new Class A construction in the West Palm Beach market, reflecting a conservative leverage profile on a stabilized, long-held asset.
"West Palm Beach has undergone a remarkable transformation, attracting significant corporate investment, new employers and residents, and that growth continues to drive demand for rental housing across the market," said Mitch Sinberg. "Tennis Towers is somewhat unique in that landscape. It is a well-established community that has been owned by Rich Properties since it was developed more than 35 years ago and continues to offer a broad range of apartment sizes and price points. This financing provides additional flexibility for a longtime owner while positioning the asset for its next chapter."
Property Overview
Located at 2882 Tennis Club Drive near Okeechobee Boulevard and I-95, Tennis Towers Apartments was built in 1990 as the first multifamily community developed by Rich Properties, which has since grown into an active developer, owner, and operator of multifamily communities throughout Florida.
The garden-style community offers a mix of studio, one-, two-, and three-bedroom residences ranging from approximately 600 to 1,750 square feet. Amenities include a tropical swimming pool and sundeck, heated spa, 24-hour fitness center, three tennis courts, BBQ and picnic areas, and a car wash area.
The property provides access to downtown West Palm Beach, CityPlace, Clematis Street, and the Brightline station, and sits approximately 11 minutes from Palm Beach International Airport. Nearby destinations include Good Samaritan Medical Center and Palm Beach Atlantic University.
West Palm Beach Multifamily Market Context
The refinancing comes as the West Palm Beach multifamily market continues to absorb new supply from a recent wave of deliveries. West Palm Beach's population has grown more than 8% since 2020, supported by corporate relocations and the ongoing development of downtown into a major South Florida business center.
Palm Beach County's stabilized multifamily occupancy stood at 93.7% as of the second quarter of 2026, with year-to-date absorption of 683 units outpacing 390 deliveries in the first half of the year. Effective rents in the county averaged $2,553 per unit per month, with year-over-year rent growth of 3.1%. Approximately 6,424 units were under construction countywide as of mid-year.
Vacancy in the West Palm Beach submarket tightened by 100 basis points over the prior year, reaching 4.8% in the second quarter of 2026. New supply has been concentrated largely in downtown luxury towers, a segment that competes at the top of the market and has limited direct overlap with garden-style communities offering a broad range of price points — the positioning that characterizes Tennis Towers.
Rich Properties' long-term ownership of the asset, dating to its original development, reflects a hands-on management approach and an entrenched tenant base. The fixed-rate structure of the new Freddie Mac loan provides rate certainty for the sponsor as the broader market continues to absorb new inventory. Cap rates for quality multifamily product in Palm Beach County generally range from the mid-4% to mid-5% range.
About the Parties
Rich Properties is a Florida-based developer, owner, and operator of multifamily communities. Berkadia is a commercial real estate company offering investment sales, mortgage banking, and servicing. Freddie Mac provided the agency-backed debt for the transaction.