Ohio Developers Land $122M to Finish Luxury Senior Housing in Port St. Lucie
A group of developers from Cleveland, Ohio scored $122 million in financing to complete a luxury rental complex for seniors in Port St. Lucie, Fla., Commercial Observer has learned.
The package includes a $95 million construction loan from Madison Realty Capital and $27 million in mezzanine debt from an undisclosed lender for the rental project, developed by America Walks. The group is a joint venture between Pride One Construction, Brokaw Development Services and Riley Hotel Group, which are all based in Ohio.
The gated Encore at Tradition community will feature 415 apartments across 62 buildings, including two four-story buildings with 56 units each. Amenities will include a salon, restaurant, pool, pickleball courts, medical office and a 24,000-square-foot clubhouse. Residents must be 55 years or older.
The 60-acre development is located near the western edge of St. Lucie County, within an 8,300-acre master-planned community called Tradition.
“Port St. Lucie has become a mecca for active adult communities, but most homes in the area are offered for sale,” David Larson of Concord Summit Capital, who arranged the debt alongside Daniel Eidson and Keegan Burger, said in a statement. “Encore stands out because it is developing homes for rent, giving retirees more flexibility and liquidity as they age.”
Construction has been underway for two years and is at least 40 percent complete. The development is expected to be delivered during the second quarter of 2024, according to a spokesperson for Concord.
Encore’s loan is the latest sizable construction loan to close in South Florida in recent weeks, despite a slowdown in the debt marks in light of interest rate hikes. Last month, Witkoff Group and Monroe Capital scored $430 million, one of South Florida’s biggest construction loans ever, for the redevelopment of a luxury condo project in Miami Beach.
As construction costs have skyrocketed since the start of the pandemic, developers have also started to take on additional debt midway through construction to finish developments.
Last week, Penn-Florida Companies upped a construction loan for The Residences at Mandarin Oriental condo building in Boca Raton, Fla. by $55 million. Oko Group and Cain International likewise increased financing to finish 830 Brickell, one of Miami’s most sought-after office developments, which is expected to be delivered in the coming months.
Julia Echikson can be reached at firstname.lastname@example.org.