Madison Realty Capital (MRC) has originated a $102 million first mortgage loan for two separate multifamily assets in South Florida, where construction has been largely permitted during the coronavirus pandemic.
The funding MRC is providing to Invesca, will finalize construction of a 98 percent complete multifamily development comprised of 214 high-end apartments and 12,000 s/f of retail. The property is located at 452 East Atlantic Boulevard in Pompano Beach, Florida and is in lease-up with expected occupancy in the next two months.
The borrower will also utilize the financing to begin construction on a separate 330-unit multifamily development project at 4350 West Sunrise Boulevard in the nearby city of Plantation, Florida. This planned development includes an additional commercial building, office development and several townhome lots on the site.
Josh Zegen, Co-Founder and Managing Principal of MRC, commented, “With the opportunity to bring a nearly complete multifamily project across the goal line and begin construction of a separate rental development with additional collateral pieces, this was a compelling deal for MRC to finance.”
“The South Florida market is flourishing as people continue to relocate to the region for tax benefits, job growth, and general quality of life. These two Class-A projects will bring new multifamily options to a supply constrained region and we’re pleased to provide the necessary funding to a well capitalized sponsor that understands MRC offers flexibility and certainty of execution in a very uncertain market.”
Christopher Longsworth, CEO of Invesca. “The onset of the Covid-19 pandemic midway through the process presented a number of challenges, however Madison’s creativity and flexibility is second to none and delivered a seamless execution amid extreme capital markets uncertainty. I look forward to completion of these two best-in-class projects with a sophisticated lender that will enable us to deliver on our vision.”
Jay Miller, BayBridge Real Estate Capital brokered the transaction.
The Pompano Beach asset at 452 East Atlantic Boulevard is a 98% complete development located on a 1.6-acre site and will total over 450,000 square feet when finished across two buildings connected by a sky bridge. The 214 high-end apartments include a mix of studios, one-bedroom/one-bathrooms, two-bedroom, two/bathrooms, and three-bedroom/two-bathrooms across 212,000 square feet. The development also includes 12,000 square feet of retail space and 362 parking spaces as well as numerous amenities for residents.
The 4350 West Sunrise Boulevard property spans 12.3 acres as part of a 24.6-acre master plan. The 720,000 square foot multifamily building on the site will be comprised of 330 high-end apartments with 626 parking spaces upon completion. The apartments will be in eight, nine-story buildings and features a mix of studio, penthouse studio, one-bedroom, 1.5-bathroom lofts, two-bedroom/two-bathroom, and penthouse two-bedroom/two-bathroom units. The development also consists of a 30,000 square foot commercial building, a 1.1-acre office development site, 10 completed townhomes, and 37 approved additional townhome lots.
MRC has continued to increase its footprint across the South Florida market, closing a number of transactions in the region over the last several years such as the December 2019 $210 million construction loan for the development of the Four Seasons Hotel and Private Residences in Fort Lauderdale.
Construction in Florida has never officially halted during the COVID-19 crisis, with municipalities taking a piecemeal approach to development.
Yesterday, Governor Ron DeSantis met with President Donald Trump to discuss a phased in re-opening of the state, hawking its progress fighting the coronavirus and saying, compared to states such as New York, “Florida has done better.”