FAVO Capital Acquires South Florida Mixed-Use Property for $190M

FAVO Capital, Inc., a Fort Lauderdale, Fla.-based finance company, has acquired 1818 Park, a Class A, mixed-use 273-unit property in Hollywood, Fla., in a $190 million all-stock and assumption-of-liabilities acquisition from GCF Development. It is the firm’s first income-producing acquisition as it seeks to diversify its holdings by adding stabilized, income-generating real estate to its long-term portfolio.

As part of the transaction, GCF Development, a Hollywood-based real estate investment firm that built 1818 Park, will become long-term equity partners in FAVO. The structure ensures operational continuity at the property and aligns all the stakeholders’ incentives, as FAVO pursues its broader investment strategy.

A FAVO spokesperson told Multi-Housing News the firm plans to continue building out a commercial real estate portfolio. The company describes its first acquisition as more than a real estate play, noting it is a deliberate step to strengthen the balance sheet and broaden the collateral base for its private credit business. The firm provides alternative revenue-based funding solutions to small and medium-sized businesses.

Community details

The 22-story, 237,109-square-foot building at 1818 and 1820 Hollywood Blvd. was completed in 2022. In June 2022, the owners, Block 40 Property LLC, refinanced the property with an $84 million 30-year permanent loan originated by Deutsche Bank, according to Yardi Research Data.

The downtown Hollywood building is located in the heart of the Young Circle commercial hub. The property has 10,000 square feet of retail space. The development has views of Young Circle Park and easy access to major highways and public transit.

The multifamily component has a mix of studios, one-, two- and three-bedroom apartments. Units have stainless steel appliances, quartz countertops, porcelain tile floors, washers and dryers, and customer roller shade window treatments. Select units have private balconies.

Community amenities include two swimming pools, a rooftop terrace, two fitness centers, two poolside barbecue areas, coffee café, yoga and stretch studio, entertaining and social lounges, coworking space and private conference rooms. The building has controlled access, covered parking for an additional fee and electric vehicle charging stations.

More Hollywood properties

1818 Park is close to another Hollywood mixed-use property. In March 2024, BTI Partners topped off the Hollywood Bread Building development, a 25-story mixed-use tower at 1740 S. Young Circle. Located on the southeast corner of Hollywood Boulevard and Young Circle, the building has 362 luxury apartments and 16,000 square feet of retail space.

BTI Partners and partner Bridge Investment Group acquired the property, the former site of the Hollywood Bread Building, in June 2021 for $11 million. A year later, the partners secured $83 million in financing from Canadian Imperial Bank of Commerce to begin construction.

Last month, NuRock Cos. secured a $38.7 million debt package for Residences at Beverly Park, a 10-story,115-unit affordable housing property at 6017 Washington St. in Hollywood set to deliver in early 2026. Regions Bank issued a $15.6 million construction loan, a $22.5 million bridge note and $772,85- Freddie Mac loan, which is set to expire in 2027. The project also qualified for 9 percent Low Income Housing Tax Credits.