Miami—A $49.6 million acquisition and renovation loan has been secured by Miami-based Aztec Group on behalf of an affiliate of Tampa-based Blue Rock Partners, owner and manager of a large central Florida multifamily portfolio.
The three-year, non-recourse, interest-only loan will go toward the acquisition of Plantation Key and Providence Park, two multifamily properties in Brandon, Fla., as well as improvements to the common areas and amenities of the properties.
Plantation Key is spread across 44 acres and offers 712 units in a total of 33 three-story buildings at 1918 Plantation Key Circle.
Right across the street at 401 Providence Rd. stands Providence Park, with nine three-story buildings and 270 units on 16 acres of land.
Location is a key attribute of the properties. Both are convenient to many major interstates and highways in the near eastern suburbs of Tampa, including I-4, I-75 and I-275, Hwy. 60 and the Crosstown Expressway. The Westfield Brandon mall and a variety of dining and entertainment options await residents nearby.
The loan provided financing for 75 percent of total project cost, and will allow the borrower to invest approximately $6 million in renovations to the property exteriors, common areas and amenities, and in interior unit improvements.
“It was apparent that the properties would benefit from internal and external renovations, so as to stabilize and better compete in the market,” Sean Harrington, Aztec Group senior associate, tells MHN.
The only challenge involved in the transaction concerned timing. “The primary challenge was related to a shorter timeline to close,” Harrington says. “But [it] was mitigated by the lender’s ability to quickly comprehend the asset and the overall strategy.”
The balance sheet loan was closed within 60 days from the original application, and may be pre-paid at par any time after the first 18 months.
“The lender quickly conceptualized Blue Rock‘s value-add strategy, enabling them to execute an aggressive and streamlined transaction,” Harrington says.
Aztec’s Jason Shapiro added that Blue Rock’s reputation as a top operation in Florida, and the strong value of income-generating assets in the marketplace contributed to the favorable financing terms obtained.
Thirty-one-year-old Aztec Group makes possible the acquisition, disposition, financing and capital needs of real estate projects for institutional investors, developers and entrepreneurs.