Kolter, Rockpoint land $108M loan for Palm Beach Gardens rentals

A joint venture between Kolter Group and Rockpoint has secured nearly $108 million in construction financing to build a 432-unit rental community in Palm Beach Gardens, another vote of confidence in northern Palm Beach County as capital keeps flowing to supply-constrained South Florida submarkets.

PNC Bank provided the $107.8 million loan for The Sutton, a five-story, garden-style multifamily project. The partners are building on a 17.6-acre site they acquired for $30 million — formerly the Hilltop Gardens Mobile Home Park — north of North Military Trail and west of Dixie Highway.

Why it matters. Construction lending for ground-up rentals has stayed selective as banks weigh new supply against absorption, so a full-size loan from a national bank signals that well-located Palm Beach County deals still pencil. The redevelopment also continues a pattern of aging, lower-density parcels — here, a mobile home park — giving way to new multifamily as land in built-out coastal submarkets grows scarce.

The numbers. The Sutton will deliver 432 apartments across five stories, with completion expected in 2028. The venture paid $30 million for the 17.6-acre assemblage before landing the $107.8 million PNC facility, putting the total capitalization well into nine figures before lease-up.

What’s next. Construction runs toward a 2028 delivery into a market the sponsors are betting stays undersupplied. “Our selective development strategy allows us to focus on submarkets like Palm Beach Gardens that are highly supply constrained,” said Dan Domb, managing member and COO at Rockpoint. The deal adds to a steady run of capital commitments across South Florida’s rental pipeline even as national construction starts cool.