Madison Bradenton Lands $60M in Financing
The project surmounted some financing and development hurdles.
Madison Capital Group has obtained $60 million in construction financing to build Madison Bradenton, a garden-style apartment community in Bradenton, Fla. Arranged by Berkadia, the funds consist of a $47 million senior loan provided by Peachtree Group, and a $13 million mezzanine loan from Hickory CRE. The deal closed July 27.
Situated at 301 Boulevard West, Madison Bradenton will feature 240 one-, two- and three-bedroom apartments. Features of the units will include above-standard-height ceilings, full-sized washers and dryers and stainless-steel appliances. A cyber lounge with flexible workspaces will represent one of property’s more prominent amenities.
Population growth
The community will be constructed on a 7.5-acre parcel currently partly occupied by a Madison-developed Go Store It self-storage facility, itself standing on the site of a one-time Sears store. The store had been part of the DeSoto Square Mall, an enclosed shopping center that opened in 1973 and permanently shuttered in 2021.
“Several challenges arose in the financing process,” Alec Fox, Berkadia associate director, told Multi-Housing News. “Both [were] related to the trepidation in the cap markets for development, as well as the property having to undergo a lot split from the adjacent self-storage development. The multifamily site was the former parking field of a defunct Sears store, while the self-storage facility was the box which housed the former Sears store.
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Berkadia was able to navigate the capital markets challenges utilizing a creative back-leave financing method for the senior lender, significantly reducing the overall cost of capital for the borrower and generating material savings for the project’s budget via interest expense. The Madison and Berkadia teams worked diligently with both the municipality and each counterparty’s legal counsel to provide comfort and certainty around the legal aspects of the split, title and legal descriptions,” Fox said. Yesterday, Madison Capital Group made news when it secured $49 million in Berkadia-arranged financing to develop Madison Midtown in Melbourne, Fla.
