Madison Realty Capital Provides $240M Loan for 77-Acre Orlando Vacation Complex

Financing will go toward creating Villatel Orlando Resort, a short-term luxury rental community

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Baseline Property Group and JSB Capital, a pair of real estate investment firms with offices in Miami, have secured a $240 mortgage loan to acquire a 526-unit portfolio of single-family rentals in Orlando, Commercial Observer can first report. 

The firms plan to convert the 77-acre property into short-term vacation rentals of luxury condos, townhouses and single-family homes.  

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Madison Realty Capital provided the senior mortgage. An additional $40 million in mezzanine financing was provided by a private family foreign office.

Baseline Property plans to work with its sister company hospitality brand, Villatel, to operate the former 526-unit vacation rental portfolio as a luxury hotel-style resort under the title Villatel Orlando Resort. 

“This is a monumental opportunity for Baseline Property Group, JSB Capital and Villatel,” Stephen Lobell and Brock Nicholas, co-founders of Baseline Property Group, said in a joint statement. 

“We anticipate an unmatched hospitality experience for our guests, who will enjoy the spaciousness and privacy of our villas coupled with the aesthetic consistency, service, and amenities characteristic of brand-name resort hotels,” the co-founders added. 

Josh Zegen, managing principal of Madison Realty Capital, said the property’s International Drive location in Downtown Orlando is “one of the top tourist destinations in the United States,” and that Orlando’s hotel and short-term rental market continues to experience “tremendous, long-term growth,” amid the current economic conditions.  

“We believe that under Villatel’s management, the property is well positioned to serve as a leading destination for travelers seeking high-quality vacation rental resort accommodations,” Zegen said in a statement. 

Upon completion, Villatel Orlando Resort is expected to feature 256 condos, 200 townhomes, and 70 single-family homes totaling more than 1 million square feet of residential space. Spanning two- and three-bedroom condos, four- and five-bedroom townhouses, and six- to nine-bedroom single-family homes, many of the units will include private pools, movie theaters, and arcade and gaming spaces. 

The nearly 80-acre resort complex will also feature a private $20 million amenity center that includes a clubhouse, water park, lazy river, fitness center, resort pool, children’s playroom and a golf-swing suite. 

The property sits on International Drive in downtown Orlando, a hospitality corridor only a short walk away from Universal Studios, Universal Studios “Epic Universe” and numerous shopping and dining options.   

Initial rentals are expected to hit the market in the fourth quarter of 2023, while all of the property’s units are scheduled to be available to rent by summer 2025. 

The deal is yet another win for Madison Realty Capital, which has been busy this year despite the highest increase of interest rates in 40 years. The firm recently provided $262 million in construction financing for a two-tower, 550-unit residential development project in Miami, and originated a $585 million construction loan to complete a $2 billion mixed-use, ultra-luxury residential, hotel and dining complex in Paradise Valley, Ariz. 

Formed in 2021, Baseline Property Group is a real estate investment and development firm that specializes in short-term and long-term single-family rentals, particularly in Colorado, Florida, and Tennessee. Headquartered in Orlando and Miami, Baseline Property Group has more than $495 million in capitalized deal value and carries an active and negotiated deal pipeline of more than $1 billion, according to the firm’s website.  

In addition to its Miami office, JSB Capital Group—a private real-estate investment firm —has offices in Baltimore and New York City. The firm invests across multiple asset classes, though it holds a primarily interest in multifamily, and has an apartment portfolio of nearly 50,000 units. 

Brian Pascus can be reached at bpascus@commercialobserver.com