KREF Lends $285M on Two Florida Multifamily Developments
In the first of two major Florida residential loans this week from the firm, KKR Real Estate Finance Trust has lent $135 million to refinance a multifamily rental development in West Palm Beach, Fla., the real estate finance company told Commercial Observer today.
The debt, a three-year floating-rate loan with two one-year extensions possible, will refresh prior financing on Portofino Place, a residential complex about three miles from the Atlantic Coast. The borrower, Atlanta-based Cortland, will pay an interest rate of Libor plus 2.9 percent on debt underwritten at a loan-to-value ratio of 73 percent. That ratio values Portofino Place at $185 million.
At the West Palm Beach development, one-bedroom apartments between 820 and 1,215 square feet go for around $1,300 per month, according to Cortland’s website for the property. Three-bedroom units that max out at 1,672 square feet are priced upwards of $1,700 per month. Residents have access to lighted tennis courts, three swimming pools and barbecue grills on the property’s landscaped grounds. Representatives from Cortland did not immediately return a voicemail.
A separate announcement from KKR says that the company lent an additional $150 million to the owners of a hotel and condominium building in Fort Lauderdale, Fla. A KKR spokeswoman declined to identify the Fort Lauderdale property except to state that it is 23 stories and has 346 units. That appears to match the description of the W Fort Lauderdale, which its owner, Related Companies, has been advertising for sale since at least the summer. The Real Deal reported Related was asking $275 million for the property. Spokespeople for JLL (JLL), which was marketing the building, and Related did not immediately respond to inquiries.
Like the Cortland debt, the Fort Lauderdale loan also earns Libor plus 2.9 percent interest and is good for three years with two one-year extensions.
Related bought the building from Y Group in 2009 for $90 million. KKR’s loan to the W came at a loan-to-value ratio that values the property at $241.9 million, about 12 percent below the previously reported $275 million asking price.
The Fort Lauderdale W building, a block from the beach on the coastal Florida city’s barrier island, comprises apartments with floor plans ranging from 1,500 square feet to just under 1,750 square feet, including outdoor terraces. The property features pools, cabanas, a sushi bar and a Mexican restaurant called El Vez.