Dealmaker: Walker & Dunlop Secure $89M For Florida Multifamily
Walker & Dunlop, Bethesda, Md., arranged $58.1 million in construction financing for two apartment properties under development in St. John, Fla.
Managing Directors Kevin O’Grady, Daniel Sheehan and Eric McGlynn arranged both transactions. Both properties will be in St. John’s Beachwalk master-planned community.
Beachwalk Apartments, a 348-unit garden-style community, received a $51.6 million construction loan and 285-unit Atlantica Isles received $6.5 million. The Beachwalk plan includes a 14-acre lagoon with a 175,000-square-foot retail village along the shore. The master plan includes more than 750 for-sale residential units, 825,000 square feet of retail and commercial space, 360,000 square feet of office space, 1.5 million square feet of industrial space and a high school. Falcone Associates LLC, Boca Raton, Fla., is developing the 21.5-acre site.
BB&T Bank, Winston-Salem, N.C., provided $34.75 million in senior financing; The remaining $16.85 million in joint venture equity came from Equity Resources LLC, Birmingham, Ala.
Americrest Luxury Homes is developing Atlantica Isles. Bank of the Ozarks, Little Rock, Ark., provided the $6.5 million financing.
Walker & Dunlop also structured $30.5 million in financing through HUD for The Highline apartments, a 171-unit mixed-use multifamily asset in Melbourne, Fla.
Several aerospace and tech companies including Northrop Grumman, SpaceX, Lockheed Martin and GE have offices near The Highline. These employers have added more than 8,000 jobs since 2012, increasing apartment demand.
Vice Presidents Jeremy Pino and Livingston Hessam and Managing Directors of FHA Finance Keith Melton and David Strange led the transaction team representing sponsor Zimmerman Development. The eight-story midrise market-rate community received a 40-year fixed-rate loan utilizing HUD’s Section 221(d)(4) mortgage insurance program.
“The Highline is following a trend that we are seeing throughout Florida, in which cities are encouraging the development of multifamily in the downtown urban cores,” Pino said.
