TODAY’S DEALS: Miami’s Surf Club Four Seasons Lands $290M Construction Loan

HFF arranges financing for a Miami condo/hotel development via Blackstone; Berkadia provides a $56.5 million acquisition loan; and Walker & Dunlop provides $33.4 million for a student housing acquisition in Orlando, Fla.

Surf Club Beach View emailMiami—HFF has arranged a $290 million construction loan for the development of The Surf Club Four Seasons Private Residences and Four Seasons Hotel in Surfside, Fla. The project will include 151 residential condo units, 77 hotel rooms and luxury retail and restaurant space.

SC Property Acquisitions LLC, an entity controlled by Fort Capital Management, was the borrower. The Blackstone Group’s Debt Strategies Fund provided the loan.

“With USD $1.2 billion of inventory and more than 60 percent of the residences already sold, the project is on track to have the largest sellout in the history of luxury residential real estate for a project in South Florida,” says Jim Dockerty, managing director at HFF. He worked with HFF’s senior real estate analyst Scott Walder on the deal.

Completion of the project is scheduled for 2016. The Surf Club is situated on 8.7 acres with more than 900 linear feet of Atlantic Ocean frontage. The resort will be centered around the meticulously renovated Mediterranean building, which has housed The Surf Club since its inception in 1930. Three modern 12-story glass towers designed by Pritzker Prize-winning architect Richard Meier will compliment the clubhouse with condominium and hotel space. Two additional four-story buildings will be dedicated to condominiums, retail and parking.

Berkadia provides $56.5M FRM for acquisition in Austin, Texas

Barton CreekOrange County, Calif. —The Orange County office of Berkadia Commercial Mortgage LLC recently arranged a $56.5 million loan through Fannie Mae for the acquisition of the Retreat at Barton Creek in Austin, Texas. Vice President Jackson Cloak worked with the principals of the borrowing entity to originate the 10-year, fixed-rate financing.

Additional loan terms include three years of interest-only payments and a 30-year amortization schedule. The community is currently 97 percent occupied.

“The multifamily debt market is highly competitive right now, so borrowers are seeking lenders who can offer multiple financing options and help determine the best course of action,” says Cloak. “After discussing a number of options, we ultimately provided a customized loan for the borrower with superior debt and execution through Fannie Mae.”

The Retreat at Barton Creek was purchased by a partnership of investors with Paydar Companies and Lankford & Associates as managing members. The property is located at 3816 South Lamar Boulevard and sits on 30 acres of land along the Barton Springs Greenbelt. The 600 apartments, which feature both one- and two-bedroom layouts, comprise a total of 426,000 square feet. Community amenities include a resort-style pool and spa area, sundeck and a recently designed clubhouse that offers residents a 24-hour fitness center and business lounge.

Walker & Dunlop provides $33.4M for Orlando student housing

Orlando, Fla.—Walker & Dunlop Inc. has provided $33.4 million for the acquisition of Adren Villas, a 336-unit student housing community in Orlando. The interest rate was locked with the 10-year US Treasury was at a then 12-month low of 2.5 percent.

New Orleans-based Managing Director Stephen Farnsworth led the team that structured the financing for repeat sponsor, Pollack Shores and their joint venture equity partner, DOME Equities with a 10-year fixed rate term, with four years interest only at 80 percent LTV under Freddie Mac’s CME program.

“This transaction is a classic case of how early rate lock can benefit borrowers who trust their financing team’s guidance and expertise,” Farnsworth says. “Understanding that a lower interest rate would help secure full loan proceeds, we encouraged Pollack Shores to lock the Treasury early, resulting in the favorable rate and securing the critical deal terms consistent with the end of their due diligence period and hard escrow date, per the purchase and sale agreement.”

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