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Multi-Family Residential Developments

Dallas developer set to break ground on Narcoossee Road apartments after securing financing

Whether for land acquisition, a construction loan or refinancing, the capital markets love Orlando, and the cash keeps flowing. In the last few weeks, developers have scored financing for new multifamily projects, hotels and master-planned communities.

Dallas-based Encore Multifamily will break ground Monday on Encore at Narcoossee, a 249-unit garden-style apartment community in the airport submarket, after securing a construction loan and equity partner with assistance from Berkadia’s JV Equity & Structured Capital team. This is the developer’s second Orlando community, following the completion and lease-up of Encore Metro at Millenia at 2437 Americana Blvd.

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Located on Narcoossee Road just north of the Beachline Expressway, Encore Narcosee will deliver a mix of studio, one-, two- and three-bedroom apartments averaging 920 square feet, featuring upgraded finishes and a resort-style club, fitness center and pool. Encore purchased the ContraVest Builders, acting as general contractor, received the notice to commence construction on July 5.

Synovus Bank provided a construction loan totaling $37.75 million. Berkadia’s Cody Kirkpatrick, Noam Franklin, and Chinmay Bhatt secured the capital provider, an institutional investment manager, providing an additional $16.39 million equity investment.

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“The capital partner Berkadia sourced was able to navigate the current market volatility and close with us on the terms originally agreed upon,” said Charlie Keels, President of Encore Multi-Family, LLC. “We look forward to partnering on many more opportunities and continuing to grow our relationship with Berkadia.”

The apartment loan was just one example of big-ticket deals approved over the last week. In Osceola County, Boca Raton-based Encore Capital Management received a $53.9 million construction loan from Centennial Bank for its Embassy Suites condo-hotel at Margaritaville.

“We’re about halfway built on that Embassy Suites,” asset manager Peter Brown said of the five-building complex next to the Margaritaville Hotel. “We’ll have the first building done in January and the second shortly behind.”

Brown said pre-sales for the units have been strong with 215 of the 300 condo units already sold.

Tampa-based Metro Development Group closed the biggest land deal of the week, paying over $31 million across multiple transactions for the Whaley Platt property on Kissimmee Park Road for what will be the first master-planned community in the Orlando market with a Crystal Lagoon amenity that will be open to the public.

The sellers were Bennie Lee Platt, Justin Shane Platt, Sherri Platt and Kissimmee Park Properties. Metro’s Hawk Platt LLC received a $49.4 million loan and credit agreement from Fidelity Land, which covers the land acquisition of the 750 acres and initial development cost. Osceola County Commissioners approved Metro’s Preliminary Subdivision Plan and Community Development District, which will govern the 2,818-home neighborhood. The mixed-use community will have two community centers, a K-8 school, over 6 miles of trails, a canoe and kayak launch on Lake Tohopekaliga, a dog park, neighborhood pocket parks, playgrounds and eco-corridors.

Also last week, Atlanta-based ECI Group recapitalized one of its two Orlando-area apartment communities as part of $625 million refinancing of 13 properties.

In December, the company paid $78 million for the Makara Orlando Apartments, a 228-unit, Class A apartment community near Valencia College in East Orlando. The community was developed by RangeWater Real Estate (formerly Pollack Shores) and delivered in mid-2021. At the time, ECI assumed the $29.36 million mortgage debt from the original developer. This asset was included in the refinancing.

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The JLL Capital Markets team representing ECI was led by professionals from the M&A and Corporate Advisory, Investment Advisory and Debt Placement verticals, including Senior Managing Director Ted Flagg, Senior Managing Director Roberto Casas, Managing Director Chip Sykes, Senior Managing Director Elliott Throne and Vice President Anderson Granger.

“ECI’s ability to generate liquidity through a debt recapitalization in today’s market reflects the resilient demand for high-quality real estate portfolios in favorable geographies led by proven managers,” Flagg said. “We are excited to witness ECI’s continued growth and expansion of its already large presence throughout the Southeast, following this highly strategic recapitalization.”

Have a tip about Central Florida development? Contact me at lkinsler@GrowthSpotter.com or (407) 420-6261, or tweet me at @byLauraKinsler. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.


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