The Cirrus Companies (Cirrus), a South Florida-based private equity real estate development firm led by founder and principal Robert B. Cohen II, completed the acquisition of a ground-up residential development site in downtown Delray Beach, Florida. The firm purchased the land at 248 SE First Avenue for $2.2 million and plans to develop three design-forward, for-sale townhomes on the parcel as the first in a deliberate series of projects targeting the downtown Delray Beach submarket.

The acquisition was financed by Flatiron Realty Capital of Great Neck, New York. For Cirrus, the transaction represents a calculated entry into one of South Florida’s most supply-constrained housing submarkets, which the firm has studied closely and believes is significantly underbuilt at the level of quality new-construction, for-sale product that today’s downtown Delray buyer is seeking.

“Downtown Delray Beach has the fundamentals we look for: tight density and height restrictions that cap new supply, limited existing inventory of quality new construction, and strong demand for walkable, well-located housing,” Cohen said. “This is not a bet on outsized appreciation or favorable market timing. We underwrite to fundamentals, and the fundamentals here are compelling. This acquisition is the first step in what we intend to be a meaningful, long-term commitment to this submarket.”

Cirrus plans to develop three three-story townhomes on the cleared site, each offering approximately 3,200 square feet under air, for a total of approximately 9,600 square feet of livable space across the project. Each residence will include a private pool, rooftop deck, backyard, and two-car garage - an ownership experience more commonly associated with single-family living than typical attached housing product.

The project is being designed by James M. Morrissey of Philadelphia-based M Architects + Morrissey Design. The site has already been cleared, with permitting expected to take approximately 90 days and construction completion anticipated within a total project timeline of approximately 10 months. That pace is made possible in part by Cirrus’s construction methodology that supports faster delivery timelines and greater cost efficiency than conventional approaches, while still maintaining a high level of design and finish.

Cirrus is targeting pricing of approximately $1,100 per square foot, with per-unit sales prices of approximately $3.5 million and a total projected sellout of approximately $11 million. Flatiron’s loan covers approximately 70 percent of land acquisition costs, with remaining construction funds drawn against the total loan commitment.

The firm points to Magnolia Place Delray Beach, which traded at an average of approximately $1,200 per square foot last year, as the closest comparable in the immediate market. Cirrus’ larger unit sizes and more extensive amenity package are expected to support pricing within that established band, without reliance on market appreciation or assumptions beyond current conditions. That is a direct function of execution efficiency: by building more cost-effectively than conventional methods allow, Cirrus can deliver a superior product within a pricing range that supports a broad, durable buyer pool.

Project sales and marketing are led by The Corcoran Group’s Delray Beach team, specifically agent Jennifer Kilpatrick. Land acquisition was handled on the seller’s side by Corcoran’s Robert Guntmacher.

This transaction is the first in a planned series of Delray Beach projects for Cirrus. The firm currently has a 26-unit boutique condominium development site under contract in the downtown core, with further details expected to be announced upon closing.

Cirrus approaches each investment as a thesis-driven platform, focused on supply-constrained, high-barrier-to-entry submarkets where housing demand from the largest cohorts of buyers is structurally supported. The firm’s competitive advantage lies in execution efficiency and disciplined basis control - not market timing - enabling it to generate strong risk-adjusted returns across market conditions.

Cirrus is led by a team with experience overseeing approximately $2 billion in total real estate transaction volume, including more than 10,000 multifamily units through fully realized value-add investments, more than 2,000 ground-up multifamily units across the Southeast U.S., and over four million square feet of industrial assemblage. Prior to founding Cirrus, Cohen co-founded Hudson Capital Properties, where he served as Chief Investment Officer and President and led a $1.2 billion portfolio exit with investor internal rates of return exceeding 25%.

Dropbox link to conceptual renderings: https://tinyurl.com/427vxen8