Dealmaker: Alliant Credit Union Lends $26M

Orlando Sky Apartments

Alliant Credit Union, Chicago, originated $25.7 million for multifamily, hotel and industrial assets in Florida and Georgia.

In Orlando, Fla., Alliant Credit Union closed a $7.8 million loan to finance Orlando Sky Management’s acquisition of Orlando Sky Apartments, a 140-unit, 17-building property. The seven-year limited recourse commitment included multiple years of interest-only payments, freeing up cash flow for the owners to execute their value-add plan. The loan also featured a forward-commitment earn out of additional proceeds upon stabilization.

Cushman & Wakefield arranged the $11.2 million sale. Cushman Executive Director Mike Donaldson and Executive Director Nick Meoli represented seller Lohman Apartments, Ormond Beach, Fla.

Alliant’s seven-year limited recourse commitment included multiple years of interest-only payments, freeing up cash flow for the owners to execute their value-add plan. The loan also featured a forward-commitment earn out of additional proceeds upon stabilization.

Orlando Sky Apartments is currently 100 percent occupied with a waitlist for new tenants. The borrower said it intends to invest more than $3,000 per unit in interior upgrades and add new amenities including a dog park, playground, pergola and grilling area.

“The challenge with the property was addressing some deferred maintenance and bringing several units back online to increase overall occupancy,” said Alliant Commercial Loan Specialist Originator Yonah Sturmwind. “The sponsors had a well thought out capital improvement plan for interior renovations including some flooring, bath and kitchen upgrades. On the exterior, the sponsors planned on adding a pet play area and a playground for children, as well as improving the landscaping, siding and a couple of roofs that had minimal useful life remaining.”

The sponsors also plan to convert the current one-bedroom unit being used as an office into a rental unit and to move the office to a former studio unit, Sturmwind noted.

Sturmwind said Meridian Capital Vice President Mark Steele referred the loan to Alliant.

“With significant demand and a lack of affordable housing, we will continue to see interest in workforce housing and neighborhoods that are experiencing outsized rent growth, which in the case of this submarket was 6.7 percent year-over-year,” Meoli said.

PWC’s Emerging Trends in Real Estate report ranked called Orlando one of the top investment markets in the country due to its strong population growth and expanding economy.

Alliant also lent $9.5 million to refinance a 197-room Kissimmee, Fla. Comfort Inn hotel located two miles from Disney World.

Jacob Cohen, Vice President with Walker & Dunlop, referred the opportunity to the credit union, which disbursed a three-year, non-recourse loan for the property.

Alliant Credit Union also closed an $8.4 million industrial property loan in Atlanta. The cash-out refinance and subsequent acquisition loan on a two-property industrial portfolio satisfied the borrower’s desire to work with one lender for the cash-out refinance of one of the properties that it already owned to utilize the cash-out proceeds to purchase the second property.

The fully occupied, single-tenant properties encompass 200,000 square feet of industrial space in suburban Atlanta’s Peachtree City neighborhood. This opportunity was sourced through Mike Giordano and Matt Gentile of Monroe & Giordano, Tampa, Fla.