Madison Capital Obtains $49M in Financing for Central Florida Project
A former Sears site is being redeveloped to make way for the new community.
Madison Capital Group has secured nearly $49 million in combined debt and equity to support its development of Madison Midtown, a 240-unit multifamily community in Melbourne, Fla., which is in the central part of the state about 70 miles southeast of Orlando.
The debt component is in the form of a $33.5 million loan from First Citizens Bank brokered by Berkadia. The equity is a $15.3 million preferred equity raise for Madison Melbourne Preferred Investors LLC. Associate Director Alec Fox of Berkadia Tampa secured the financing on behalf of the sponsor, Madison Capital Group
Madison Midtown will rise on the site of a 14-acre former Sears site. Located at 1034 South Babcock St., the completed development will offer granite countertops, stainless steel appliances, and premium cabinetry and flooring.
Residents will have access to a clubhouse with a demonstration kitchen, a cyber lounge with flexible workspaces, a resort-style pool with cabanas, and a bark park with a dog wash. The community will also feature “chef-inspired” kitchens.
The Palm Bay-Melbourne-Titusville metro area, also known as the Space Coast, has seen its economy expand recently due to growth from the aerospace and defense industries. The local labor force has ballooned from around 260,000 only 10 years ago to just shy of 310,000 recently, according to Census Bureau data. Tourism is also strong in the area.
In a prepared statement, Madison Capital Group CEO Ryan Hanks calls Melbourne a high-barrier-to-entry market but one where the growing economy will mean demand for apartments.
Charlotte, NC-based Madison Capital specializes in the self-storage and multifamily sectors. The company is the parent entity of Go Store It Self-Storage, and Madison Communities, a developer focused on garden-style apartment communities in the Southeast.
Health demand in Brevard County
Demand for apartments, townhouses and condos catering to the needs of the space industry workforce is already growing, according to Rent in Brevard Property Management. The company reports a marked increase in inquiries for rental properties, particularly those in proximity to the Kennedy Space Center and related facilities.
The market isn’t solely dependent on the space industry, however, with its tech, manufacturing, and education sectors also growing. This diversification bodes well for the local economy and, by extension, the rental market, Rent in Brevard notes.
The company predicts that the market will remain robust, with rents stabilizing at higher levels than historical averages. On the other hand, Rent in Brevard also anticipates that new housing development will eventually catch up with demand, bringing more balance to the market.
