FAVO Capital Buys South Florida Rental Building in $190M Deal

Private credit company FAVO Capital acquired a multifamily building in Downtown Hollywood, Fla., in a $190 million deal, the buyer announced. 

Called 1818 Park, the 22-story building features 277 apartments and about 24,000 square feet of ground-floor retail space at 1818 Hollywood Boulevard, facing the ArtsPark at Young Circle. As part of the all-stock and assumption-of-liabilities acquisition, the developer of 1818 Park, GCF Development, secured an equity stake in Lauderhill, Fla.-based FAVO.

“Adding a stabilized, income-producing asset of this caliber doesn’t just diversify revenue,” Vaughan Korte, the chief financial officer of FAVO Capital, said in a statement. “It directly supports the growth of our private credit operations by enhancing the quality of the collateral we can leverage in financing negotiations.” 

GCF Development, led by Chip Abele, completed the 498,512-square-foot building in 2022 after buying the parcel for $3.5 million in 2009 and securing a $70 million construction loan from Trez Capital in 2021.

Shortly after 1818 Park’s completion, an affiliate tied to Abele purchased the asset for $65.6 million and refinanced it with $84 million from Deutsche Bank, according to property records. The loan went toward repaying the construction debt, The Real Deal reported. 

A representative for GCF Development did not immediately respond to a request for comment.

Julia Echikson can be reached at jechikson@commercialobserver.com.