KKR Lends $122M on Apartments Purchase Near Disney World
By Andrew Coen May 2, 2022 11:55 am
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A joint venture led by Leste Group, The Bascom Group and East Hill Capital Partners landed $122 million of acquisition financing for a 448-unit multifamily asset in Orlando, Fla., near Disney World, Commercial Observer has learned.
Accounts managed by KKR provided the debt package for the JV’s purchase of Chatham Square from Priderock for $151 million.
“We are delighted to provide financing for this transaction to the high caliber partnership between Bascom, Leste Group and East Hill Capital Partners,” Julia Butler, managing director of KKR’s real estate credit team, said in a statement. “We share the sponsors’ conviction in the Orlando market and are pleased to support their investment in this dynamic community.”
Newmark arranged the transaction with a team led by Dustin Stolly and Jordan Roeschlaub alongside Danny Matz and Dan Morin.
Located at 8150 Chatham Manor Boulevard in Southwest Orlando, the garden-style apartment community was originally constructed as corporate housing for Disney World in 2000. Priderock terminated a master lease with Disney and transformed the property into market-rate rental housing with renovations. The new Chatham Square owners are planning further upgrades to the complex, which has recently experienced strong leasing velocity averaging 53 move-ins per month.
“Chatham fits well with our investment thesis of acquiring vibrant, well located multifamily apartment communities in growing markets at below the cost of replacement,” Josh Patinkin, managing director at Leste Real Estate, said in a statement. “We’re strong believers in Orlando’s continued growth and think the city’s theme parks are in as good a position as ever as they expand their operations across Southwest Orlando and create more jobs.”
Officials for Newmark did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
