City trying to appeal to a wider market with high-end rentals
April 2, 2013|By Attiyya Anthony, Sun Sentinel
Boynton Beach officials hope it’s a sign of things to come — a high-end rental complex that aims to attract young professionals and seasonal residents.
Compson Associates has broken ground on Compson Place — the city’s newest luxury rental development on Congress Avenue and Gateway Boulevard, and city officials are thrilled.
“There’s a big push for rentals right now, because it’s very difficult to get loans from the bank, a lot of people are renting to wait for the economy to bounce back,” Mayor Jerry Taylor said.
Compson Place is the final part of Renaissance Commons, an 86-acre mixed use condominium facility overlooking bars, restaurants and shopping.
In addition to snowbirds and young people, the apartments also are being marketed to those who have gone through foreclosures.
The average rent for a one bedroom apartment in Compson Place will be $1,200.
The development, which is scheduled to open in April 2014, will have 338 rental units and 3,427 square feet of retail space for a “midtown” real estate office for properties along the “Congress Avenue Corridor.”
Carl Klepper, a vice president of Compson Associates, said that there is a shortage of luxury rentals in Boynton.
“A lot of the rentals were converted to condos during the 2003-2006 condo-sales boom. Compson Place is a place where people can afford to live, work and play. It’s for people who want to be in the middle of the action, people who want to come home from work and get a beer or go shopping across the street,” he said.
Before the condo market declined in 2007, Compson Place was slated to be Santorini condominiums, with 348 condos and 47,000 feet of retail space.
Klepper said the change in the site plan was the result of an over-saturated condo market.
“The condo market was so red hot back then, but at the end of the condo cycle we decided we wanted to offer a rental community to offer more diversity to the project,” Klepper said.
The neighboring residential units in Renaissance Commons are all condos, but with the addition of Compson Place, city officials believe that it could increase property values in a city that has seen them drop 40 percent from 2007 to 2011.
“The higher the value of the project, the higher the tax,” said Michael Rumpf, director of planning and zoning for Boynton Beach. “Moreover, the developments bring people who spend part of their incomes on goods and services in the city, contributing to the demand for new shops and restaurants, this in turn may create new jobs.”
In Boynton, there are currently seven rental projects in the pipeline with a total of 1,203 units and Realtors say that the city is on the right track encouraging these type of developments.
Jim Hudson, broker for Hudson Realty based in Boynton Beach, said, “a lot more people are looking for high-end rentals, there are a lot of mid-priced ones, but very few are defined as luxurious, so there is definitely a niche.”