PNC Bank Lends $41M on Daytona Beach, Florida Multifamily Acquisition

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Nashville-based Nicol Investment Company has nabbed more than $41 million in debt from PNC Bank to aid its purchase of an apartment complex in Daytona Beach, Fla., Commercial Observer has learned. 

The loan was used to acquire Madison Pointe, a 240-unit garden-style complex at 1310 Tomoka Town Center Drive in Daytona for $68.5 million, representing a loan-to-cost ratio of almost 60 percent. Nicol announced its purchase of the property on Dec. 1. 

SEE ALSO: US Bank Lends $135M on The Capstone at Port Imperial in West New York, NJ

A joint venture between Palm Beach Gardens, Fla.-based Eastwind Development and West Palm Beach, Fla.-based North American Development Group developed and sold the property, according to Newmark, which advised the seller in the deal and also procured the financing for Nicol. 

Nicol’s Director of finance, Grant Nicol, said in a statement at the time the purchase was announced that the deal is a continuation of the company’s goal to “invest in well-located, amenity-rich communities in high-barriers-to-entry markets.” 

A representative for PNC Bank did not respond to an inquiry. 

Newmark’s Scott Ramey, Brad Downing and Paul Grant advised the sellers in the deal, while Matthew Williams and Kyle Schlitt, from Newmark’s debt and structured finance group, secured the financing for Nicol’s acquisition, according to Newmark.

“We were able to secure extremely aggressive debt terms that provided our client with the loan dollars and flexibility to execute on their business plan,” Schlitt said in a statement. “Madison Pointe will be a great addition to Nicol’s central Florida portfolio.” 

Built in 2020, the apartment community comprises a collection of four, four-story elevator buildings that surround a central clubhouse. The property features a resort-style pool, an outdoor kitchen and lounge area, a fitness center that includes a yoga andspin studio, a game room, a pet spa, a dog park, electric car charging stations and rentable garages, according to information from the property’s website and from Apartments.com

The property is located adjacent to both the Tomoka Town Center and Tanger Outlets Daytona Beach, two open-air shopping centers that together include more than 1 million square feet of retail space.

“Madison Pointe is adjacent to the Tomoka Town Center and Tanger Outlets, which comprise more than 1 million square feet of destination retail and dining venues and is just minutes from major employers like AdventHealth Daytona Beach, Halifax Health Medical Center and the Daytona International Speedway,” Nicol said. 

Newmark’s Ramey said the property is situated in a “coveted location that offers residents unmatched walkability to a variety of retail, dining and entertainment options,” which he added led to “an incredible lease-up, achieving stabilization in less than seven months from taking first move-ins. This strong historical performance gives the new owner a tremendous opportunity to benefit from the long-term growth trends taking place in the rapidly growing Daytona Beach market.” 

Madison Pointe includes a mix of one-, two- and three-bedroom units, ranging in size from more than 730 square feet to almost 1,300 square feet, according to listings from Apartments.com. Monthly rents range from more than $1,500 for one-bedrooms to about $2,000 for three-bedrooms. 

Mack Burke can be reached at mburke@commercialobserver.com