TODAY’S DEALS: Cushman & Wakefield Arranges Orlando Fractured Condo Sale
Cushman & Wakefield advises a Madison Capital Management affiliate on a fractured condo sale; Castle Lanterra enters Chicago with a $28.5 million, 425-unit buy; and Largo Group arranges a seven-year, $32.75 million permanent loan.
Orlando, Fla.—Cushman & Wakefield has advised an affiliate of Madison Capital Management in arranging the sale of 203 residential condo units within Heritage Estates, a 272-unit Class A community located in Orlando. The services firm also secured $15.7 million of debt and arranged joint venture equity financing from CenterSquare Investment Management, the real estate investment boutique for BNY Mellon, on behalf of the buyer. Key Bank provided the five-year financing.
“Well located, solid communities like this now attract capital seeking much lower returns than they have for the past several years, despite the fractured nature of the condominium,” says Dave Karson, executive managing director at Cushman & Wakefield. “The debt and equity markets have improved so dramatically over the past few years, even a year ago this type of capitalization would probably not have been possible.”
Karson’s team in Cushman & Wakefield’s Equity, Debt & Structured Finance group included Steve Kohn, Chris Moyer, Sridha Vankayala and Suraj Ravi.
Built in 2003, Heritage Estates is located between University of Central Florida and Orlando International Airport in the East Orange/University of Central Florida submarket. Madison has been invested in the property as either a lender or direct owner since 2005 and has over the years established a track record of acquiring units and converting them to rentals.
Castle Lanterra completes first Chicago acquisition
Chicago—Castle Lanterra Properties has picked up a 425-unit community in Chicago for $28.5 million in an off market transaction. Southgate Apartments is located is located in the city’s Mount Greenwood neighborhood. The purchase price, which represents a 9 percent cap rate, includes the assumptions of an existing $17 million Fannie Mae loan that matures in 2021.
Southgate is Castle Lanterra’s first acquisition in the Chicago MSA. The New York-based family office, headed by Elie Rieder, plans to improve the property through a $2.6 million capital enhancement program that includes common area and unit upgrades, implementation of a ratio utility billing system (RUBS) and more.
Largo arranges seven-year, $32.75M permanent loan
Buffalo, N.Y. —Perry Miceli, principal for the Largo Group of Companies, arranged $32.75 million in financing for a 460-unit multifamily community located in Grand Island, N.Y.
The property, known as Town Hall Terrace, is centrally located between Buffalo and Niagara Falls, within immediate proximity to I-190. It features 384 garden-style apartment units, 46 townhouse units and 30 patio home units. Perry arranged a seven-year permanent first mortgage with 30-year amortization through one of Largo’s correspondent lenders.
Largo has relationships with 17 correspondent lenders and offers additional lending sources to the marketplace, which will benefit owners and developers of commercial properties providing alternative finance options. Largo offers long-term, non-recourse financing at a competitive fixed rate for its borrowers through its strong network of correspondent lenders.
