Florida Property Lands Financing for Rental-to-Condo Conversion

Plantation, Fla.-based Invesca Development and the Gold Coast Florida Regional Center, an EB-5 immigration investing program center, have secured a $55.2 million bridge loan to convert Envy Pompano Beach into condominiums. The 214-unit Class A rental property is located in Pompano Beach, Fla.

Forman Capital, a Boynton Beach, Fla.-based private direct real estate lender, provided the loan. Ben Jacobson, Scott Mehlman and Ty Regnier of Forman Capital originated the loan on behalf of the borrower, Envy Development DE. Jay Miller, Spencer Miller and Noah Rothman of BayBridge Real Estate Capital, a New York City-based commercial real estate capital markets advisory firm, brokered the financing transaction, which closed on Aug. 29.

Invesca, which completed Envy Pompano Beach in 2022, received a $55 million loan from Deutsche Bank in March 2022 to refinance the development, according to the Commercial Observer. That loan retired $50 million in debt received in November 2020 from Madison Realty Capital to refinance the property. Earlier in 2020, MRC had provided Invesca with a $102 million construction loan for Envy Pompano Beach and another Invesca property under development, the 330-unit Pixl Apartments in Planation.

Envy details

Envy Pompano Beach, which has two 11-story buildings, is located at 450 E. Atlantic Blvd. between Dixie Highway and U.S. 1 within the Koi master-planned community also developed by Invesca. The first phase of the Koi community included 46 waterfront villas, trails, three parks and a private 26-slip marina and was completed in 2017.

The Envy property has studio, one-, two- and three-bedroom units ranging from 703 to 1,026 square feet. The units have luxury finishes, stainless steel appliances and private balconies. Amenities include a resort-style pool with cabanas, wine lounge, spa, outdoor movie theater, fitness center, pet spa and marina access. Each building has three floors of parking and commercial space and eight floors of residential space.

Executives at Forman Capital noted Pompano Beach is in the middle of a building boom, spurred in part by the city’s $50 million investment into capital projects between 2012 and 2022. The Community Redevelopment Agency’s investments in the city’s downtown helped transform Pompano Beach into a year-round destination with new housing, restaurants and entertainment offerings.

Several new luxury residential condominium projects with iconic brand partners like Ritz-Carlton and Waldorf Astoria are being developed in the city by prominent developers like the Related Group, which has partnered with Merrimac Ventures and Hilton to launch Waldorf Astoria Residences Pompano Beach. The 28-story waterfront tower will have 92 luxury condos.  Related has several other projects in the city including the 105-unit Solemar luxury condo development. In May 2023, Related broke ground on Casamar Residences, a 21-story condo project with 119 units slated for completion next year.

Fortune International Group and Oak Capital are building the Ritz Carlton Residences, Pompano Beach, which will have 205 luxurious condominiums when it is completed in 2025.