QuadReal Provides $176M Refi for Two Multifamily Properties in Orlando and Phoenix

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An institutional partnership led by Starlight U.S. Residential has landed $176 million for two multifamily properties in the Orlando and Phoenix metropolitan areas, Commercial Observer can first report. 

The debt includes an $81 million refinancing for Oasis at Shingle Creek, a 356-unit multifamily community in Kissimmee, Fla., and a $95 million refinancing for Avant at Fashion Center, a 335-unit multifamily property in Chandler, Ariz., The three-year floating rate bridge loans were provided by lender QuadReal.

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Newmark’s Matthew Williams, Kyle Schlitt and James Maynard negotiated the financing on behalf of the sponsor,  

“With both Orlando and Phoenix having seen tremendous rent growth over the past few years, we were able to procure competitive terms for our client,” said Williams. “These assets have seen robust leasing velocity and rental increases similar to their broader markets, and as a result their values have skyrocketed dramatically, making the debt underleveraged.” 

Located at 4350 Osceola Trail Road, Oasis at Shingle Creek is a garden-style multifamily community built in 2018. Community amenities include a Starbucks lounge and internet café, 24-hour fitness center, theater with lounge seating, game room, dog washing and grooming station, and a heated pool with a spa. 

Avant at Fashion Center is a multifamily property built in 2017 at 555 S Galleria Way. Community amenities include a resident lounge, conference room, clubroom with demonstration kitchen, fitness center, outdoor yoga lawn, pool and cabanas.

According to Newmark’s Multifamily Capital Markets Report for the first quarter of 2022, the outstanding multifamily mortgage debt rose to $1.8 trillion as of the fourth quarter of 2021, a 1.5 percent increase, quarter over quarter. While the government-sponsored enterprise (GSE) debt outstanding rose slightly over the past quarter, banks, life companies and debt funds increased lending capacity in 2021. With $832.5 billion in multifamily mortgage maturities estimated over the next five years, the multifamily investment sales and financing markets are likely to remain robust.

Starlight U.S. Residential and QuadReal officials did not immediately respond to requests for comment.

Emily Fu can be reached at efu@commercialobserver.com.