NKF Originates $73M Financing for the Purchase of Two Florida Rental Assets

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Newmark Knight Frank (NKF) has originated $72.5 million in Freddie Mac-backed debt to facilitate American Landmark Apartments’ (ALA) acquisition of two multifamily properties in Central Florida, Commercial Observer has learned. 

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The financing package included two floating-rate loans insured by Freddie Mac that ALA used to buy the 624-unit, dual asset portfolio.

About $36 million of the proceeds went towards the purchase of Radius at Winter Park in Orlando, while almost $36.5 million was provided for Ashford at Feather Sound in Clearwater, as per information from NKF. ALA will undergo value-add campaigns across the two properties, which will be renamed Onyx Winter Park and Fairways at Feather Sound, according to information from ALA and NKF.

“These are two fabulously located, presently underperforming assets in two of the strongest job markets in Florida,” ALA CIO Christine DeFilippis said in a statement as part of the firm’s Sept. 30 announcement. “Tampa’s economy and rental market has proven resilient throughout the pandemic, and while Orlando’s job market was temporarily up-ended by the closure of theme parks and entertainment venues, jobs are starting to return and apartment demand will likely be shored up by an increasingly diversified economy which is driving apartment demand, as well as in-migration from other parts of the country.”

Matt Mense, Henry Stimler and Bill Weber, along with Osman Baig from NKF Multifamily Capital Markets worked on behalf of ALA in securing the acquisition debt. Mense said in a statement that “floating rate products, matching flexibility with low rates, are increasingly attractive to clients in today’s environment.” 

Onyx Winter Park is a 336-unit rental property at 100 Reflections Circle in Casselberry, Fla., which is a small town just 13 miles north of Orlando, and Fairways at Feather Sound is a 288-unit asset at 13621 Feather Sound Circle East, on the banks of Old Tampa Bay and near the western coast of Florida in the Clearwater suburb of Tampa-St. Petersburg. 

Radius Winter Park renaming to Onyx Winter Park NKF Originates $73M Financing for the Purchase of Two Florida Rental Assets
Onyx Winter Park located outside of Orlando. Courtesy: NKF

ALA will make a range of improvements to the individual units in each property, including upgrading the kitchens and appliances and adding electric locks, and it will move to renovate the fitness centers and clubhouses at each location as well as add new poolside furniture and upgrade the landscaping. 

Situated on a 33-acre site and comprising 16 two- and three-story buildings, Onyx Winter Park features a clubhouse and fitness center, a pool and pool deck, barbecue and picnic areas, an internet café, a dog park, a 24-hour laundry facility, a playground and a pet spa, per NKF and information from the property’s website. 

Fairways at Feather Sound has 21 two-story buildings and a clubhouse on a site that spans nearly 22 acres, and the apartment complex includes amenities such as a fitness center, a heated swimming pool, pool deck and a hot tub, a recently-renovated clubhouse with a a business center, a dog park, two lakes on site, a tennis court and grilling areas, as per NKF and information from the asset’s website.

Onyx has one- and two-bedroom floor plans ranging from 468 to 998 square feet, and its monthly rents currently range from just under $1,000 to around $1,500, as per information from the property’s website and rent details from Apartments.com. 

Fairways offers one- and two-bedroom units from 608 to 1,067 square feet, while monthly rents range from around $1,100 for one-bedrooms to $1,600 for two-bedroom residences.