JV Gains $114M Bridge Financing for Florida Build-to-Rent Portfolio
Both communities were built last year.
A joint venture between EDEN Living and an institutional investment partner has obtained $114 million in construction takeout bridge financing for a two-property build-to-rent portfolio in Florida. The transaction resulted in a $70 million refinancing for EDEN at Heritage Lakes in West Melbourne, and a $44 million refinancing for EDEN at Kendall West in Jacksonville. JLL Capital Markets secured the financing for the two properties.
Opportunity-driven construction
Situated at 4850 Heritage Lakes Blvd., EDEN Heritage Lakes is a 373-unit one year old build-to-rent property. The community has a mix of one-, two- and three-bedroom residences averaging 976 square feet. Homes at EDEN Heritage Lakes have vaulted ceilings, vinyl flooring, island kitchens and balconies or patios. Amenities include package service, door-to-door trash pickup, planned social activities, a pet play area and washing stations.
Located in close proximity the Sunshine State’s Space Coast, EDEN Heritage Lakes has access to job hubs for a number of industries including space exploration, aerospace, advanced engineering and defense.
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Built last year at 9105 Tredinick Pkwy., EDEN at Kendall West is a 265-unit build-to-rent community. It has an array of one-, two- and three-bedroom floor plans averaging 988 square feet in size. Features and finishes of residences of EDEN at Kendall West include hardwood flooring, walk-in closets, ceiling fans, vinyl flooring, in-unit washer-dryers, island kitchens, patios and yards. Common-area amenities include controlled access, a business center, pet play area, cabanas, clubhouse and door-to-door trash pickup.
A Jacksonville multifamily market report from Yardi Matrix reported that an overabundance of new multifamily deliveries over the past year had taken its toll on asking rents. Asking rents in April dropeed by 1.7 percent year-over-year, following a wave of new multifamily deliveries.
Tough-to-earn financing
Closing on the financing for both properties was not a seamless process, particularly in the current macroeconomic environment. “When we initiated the financing process, both assets had just finished construction and were in the early lease-up phases, presenting a natural challenge for most lenders,” JLL Capital Markets Senior Managing Director Max La Cava told Multi-Housing News.
“JLL worked with lenders to structure around this issue and provide comfort that the assets were well positioned to reach stabilization within a predetermined schedule. Additionally, prior to engaging the lender on the second transaction, credit markets experienced major volatility following the U.S. government’s tariff announcement,” La Cava detailed.
