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South Florida developer scores HUD construction loan for luxury apartments in Nona Cove community

Futura @ Nona Cove will feature 260 apartments ranging from 623 square feet to 1,315 square feet.
Futura @ Nona Cove will feature 260 apartments ranging from 623 square feet to 1,315 square feet. (FUTURA)

South Florida-based FUTURA Company just scored more than $52.5 million in financing from the U.S. Department of Housing and Urban Development for the construction of a luxury multifamily community near Orlando’s affluent Lake Nona community.

The project called, Futura @ Nona Cove, will feature 260 apartments within a five-story rental community at the intersection of Narcoossee Road and Boggy Creek Road.

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The project will offer studios, one-, two- and three-bedroom units ranging in size from 623 square feet to 1,315 square feet. All apartments will have den spaces, nine-foot-tall ceiling heights with top penthouse units reaching up to 12-feet in height, full-sized washers and dryers, and balconies and private patios on first floor units.

Market-rate, as well as low-to-moderate income housing, subsidized affordable housing properties and multifamily and cooperative housing projects are eligible for HUD multifamily construction loans.

The HUD mortgage, known as a 221(d)(4) loan, that FUTURA was able to negotiate is a 40-year amortized construction loan with a fixed interest rate and an 85% loan-to-cost ratio. Berkadia’s Mitch Sinberg and Jared Hill of Berkadia’s South Florida offices arranged the financing through Berkadia’s HUD platform.

Mark Portrait Construction is the contractor. FUTURA tapped Altman Management Company to begin leasing the apartments by November 2021, with an anticipated completion date slated for the third quarter of 2022.

FUTURA president Reinerio Faife told GrowthSpotter he felt HUD-backed mortgages were a more stable source of financing. He said after having lived through numerous recessions, he didn’t want to take any chances.

“The loan has given us the opportunity to move forward with our project and I’m grateful and thankful to start sharing the news with the community,” he said.

FUTURA partnered with LinkVest Capital as its equity partner on its wellness-branded, mixed-use community, he calls Nona Cove. The apartments are part of the first phase.

The Nona Cove mixed-use project will feature over 29,000 square feet of commercial/retail space.
The Nona Cove mixed-use project will feature over 29,000 square feet of commercial/retail space. (FUTURA)

The developers are equipping the apartment community with an advanced air filtration system and a large array of amenities, including a two-story clubhouse with a resident lounge, game room and a theater. Other features include coworking areas, a resort-style pool with 25-yard lap lanes, fitness and wellness center with meditation courtyard areas, and a community walking and jogging trail outfitted with fitness stations.

Futura @ Nona Cove will also be pet-friendly and feature a community dog spa and large linear park with sitting gazebos.

The second phase includes the construction of a 122,000-square-foot self-storage building with a drive-thru area, and over 29,000 square feet of commercial/retail space will follow the apartments, Faife said.

The four-story, climate-controlled self-storage facility will be managed by Extra Space, and the retail space is being marketed to both locally and nationally recognized tenants, he said.

Orlando real estate investor Jordan Theis, is also in the midst of seeking HUD financing as well as noncompetitive 4% Low Income Housing Tax Credits for what would be his first affordable workforce housing community.

Plans call for a 72-unit multifamily community at 5750 Stonewall Jackson Rd., just off Semoran Boulevard in east Orlando.

Have a tip about Central Florida development? Contact me at arabines@GrowthSpotter.com or (407) 420-5427, or tweet me at @amanda_rabines. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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