Developers score construction loans for new apartments and BTR communities

Three developers have secured over $100 million in construction financing for new rental communities in Orlando, Kissimmee and Wildwood.

Boca Raton-based The Altman Companies this week closed on a $41.2 million loan with Comerica Bank for the second phase of its Altís Grand Lake Willis community on Daryl Carter Parkway in Orlando’s tourism corridor. The 230-unit Class A community dubbed Altra Lake Willis will be developed in partnership with institutional investors advised by J.P. Morgan Global Alternatives.

The Altís Grand Lake Willis is scheduled to deliver its first units in June. Once complete, both standalone multifamily projects will deliver a total of 559 luxury rental units to land near Universal theme parks and across the street from the Target-anchored Vineland Pointe shopping center. Altman paid $8.1 million last September for the 9-acre, phase 2 site.

Jeff Roberts, President of The Altman Companies, told GrowthSpotter that construction on Altra Lake Willis commenced in late 2022 and will deliver its first units in February 2024. The project will be completed in October 2024. He said the two sister communities will have complementary products and stratified rent levels.

Altra Lake Willis will have its own resort-style amenity package, including a 5,225-square-foot clubhouse with 24-hour fitness center, oversized mail kiosk, beach entry heated pool adorned with fountains, lounge chairs, grilling stations, and a fire pit, as well as recreational seating areas.

“The pool area, and it’s true this term is overused in our industry, but it truly is commensurate with a large resort hotel type pool area, so we’re very excited about bringing that online,” Jeff Roberts, President of The Altman Companies, told GrowthSpotter.

The community also will be pet-friendly, featuring a pet park with a gated, off-leash area for residents to bond and play with their pets. Residents also will be able to utilize a grooming salon in the clubhouse building.

“The grooming area is separate from the dog park,” Roberts said. “It’s air conditioned with really well designed and appointed, convenient, ramped washing stations and blow dry bins.”

The community will also be equipped with 24/7 package delivery through Fetch and dry-cleaning pickup station for residents’ convenience.

Mill Creek Residential Trust, known locally for its Modera-branded luxury apartments, recently closed on 25 acres in Osceola County for what will be the company’s first single-family rental community in Central Florida.

Mill Creek paid $3.83 million on Feb. 28 for three parcels spanning both sides of Freedom Road, east of Ham Brown Road in Osceola County that has an approved site development plan for a 185-unit townhouse community. The company, which launched its Amavi single-family-rental division in 2021, secured a $38.9 million construction loan from First Horizon Bank.

Dallas Austin, director of development for Mill Creek/Amavi, told GrowthSpotter the would be divided into two phases, with 115 units in Phase 1 north of Freedom Road and 75 units in Phase 2. It contains three building product types: front-loaded townhomes, rear-loaded townhomes and 2-story duplexes. The front-loaded units will have a single-car garage, and all of the rear-loaded units will have a two-car garage.

“We will also be prewiring all garages for EV chargers, “ Austin said. “All of the front-loaded homes will have a fenced back yard with a mix of artificial turf and pavers. The rear-loaded units will have a 3-foot tall fenced area in the front, so you can let your dog out or sit and have a cup of coffee.”

The subdivision plan from Askey Hughey Inc. also shows a pool and clubhouse, a dog park and tot lot in Phase 1. There’s potential to add a second dog park in Phase 1. “The community will feature Bulk Wifi and the clubhouse will have a fitness center for the residents,” Austin added.

It’s just south of the Lowe’s distribution center on Ham Brown Road and abuts another planned townhouse community called Lifeview, which is seeking permits for another 150 units.

Mill Creek has a second Amavi-branded community with 300 cottage-style units in the pipeline in Osceola County just off U.S. 192 in the Fish Lake Planned Development. Amavi Fish Lake will rise on 42 acres just south of the Cobblestone apartments and AdventHealth Partin Settlement campus. The developer was pursing plans for a third BTR project on Clay Whaley Road but is no longer involved in that project.

JLL Capital Markets’ SFR team arranged a $22 million non-recourse construction loan for EDEN Living’s new 130-unit BTR community near The Villages in Wildwood. The advisory team was led by Senior Director Max La Cava and Director Kenny Cutler.

“This high-end build-to-rent project complements the tremendous growth occurring in The Villages area,” EDEN Living CEO Jay Jacobson said last year after closing on the site. “The project site is surrounded by large-scale developments, many golf courses and an abundance of commercial and retail space. We are filling a void for new multifamily product in the area.”

The Wildwood project is part of a joint venture between EDEN Living and an investment fund managed by Morgan Stanley Real Estate Investing (“MSREI”). EDEN previously finalized an agreement for MSREI to invest up to $180 million in its developments. The fund placed a $22 million equity investment in the Wildwood community, which is separate from the $22 million construction loan.

Capital markets may be tight due to higher interest rates, but Orlando’s continued population growth and housing demand has buffered some financing headwinds — especially in the build-to-rent sector. The Orlando metro area saw the highest single-family rent growth in the U.S. last year, according to CoreLogic, which reported a 10.8% year-over-year increase in December 2022 compared to a national average of 6.4%.

Roberts with Altman said multifamily lenders favor experienced developers. “I would say that for experienced developers with well-located properties, there is capital available,” he said. “The capital is selective but available.”

Editor’s Note: This story was updated on March 22, 2023 with additional information about Mill Creek Residential’s expansion plans.

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.