CGI Strategies has acquired a luxury property in Celebration, Fla. Dekel Capital worked on behalf of the buyer to facilitate a $47.5 million bridge loan for the acquisition, renovation and stabilization of the vacant four-year-old, 306-unit community at 1662 Celebration Blvd. The firm placed the loan with commercial real estate finance company ACORE Capital.
To be rebranded as Astoria at Celebration, the community offers a mix of luxury one-, two- and three-bedroom apartments. An outdoor summer kitchen highlights the community’s list of upscale amenities. Residences feature 9-foot-high ceilings, fully-equipped island kitchens with stainless steel appliances, 42-inch espresso cabinets, granite counters and walk-in closets.
Consisting of a half dozen, four-story, art deco-inspired residential buildings, arrayed across a 14.5-acre parcel, the Class A community is undergoing substantial enhancements designed to rectify deficiencies that occurred during construction. Part of the financing will go to complete the county-approved and engineered enhancements and put the property back on the market.
“The main challenge was to get lenders to overcome the fear of the construction defect to the property,” Shlomi Ronen, Dekel Capital principal, told Multi-Housing News. “We reviewed all the reports and plans that were provided by the seller as well as our client. We also spent time on site with the construction management team to understand the proposed fix.
“This time spent getting familiar with the property and the proposed renovation scope enabled us to get a number of lenders comfortable that the sponsor [would] not only be able to correct the construction defects but also [gain] a handle on the total scope of renovation needed.”
On the market
Apartments range from 741 to 1,371 square feet in size. Because improvements are slated for completion by year’s end, the units are now being marketed by CGI Strategies.
“We were able to demonstrate to the lender that once the construction issues are remediated, the property will be a first-to-rent, highly-amenitized community in a burgeoning multifamily market with tremendous demand drivers,” Ronen said in a prepared remark.
“In addition, CGI is an experienced sponsor that has a track record of acquiring and remedying problematic real estate assets and successfully returning them to market.”