Peachtree Lends $44M on Florida Panhandle Multifamily Project  

Arris Holdings has sealed $43.5 million of bridge debt for the completion and lease-up of a multifamily community in the Florida Panhandle, Commercial Observer has learned.

Peachtree Group originated the two-year loan with one-year extension option to finance the final phase of the Seahaven Apartments project in Panama City Beach, Fla. The apartment project is roughly 90 percent complete. 

Walker & Dunlop negotiated the debt with a team led by Alfie Means and Zach Whorton.

Taylor Pike, senior vice president at Peachtree, noted that the development will enjoy strong demand drivers as one of only two multifamily communities in the Panama City market with direct beach access. The property is also near major employers including a planned Florida State University Health hospital campus and Tyndall Air Force Base.

Pike added that the deal also reflects a broader trend across the Southeast U.S. with sharp population growth in recent years and limited new supply. The Panama City market absorbed roughly 660 units over the past year with vacancy rates declining and will see no major multifamily projects delivered over the next two years, according to Pike.

“Renters like newer product, and there’s not going to be really that new competition for the foreseeable future just given how expensive it is to build now,” Pike told CO. “It is hard to project rental rates that are going to make it make sense, just given all the elevated costs.”

Located at 201 Hills Road 110 miles west of Tallahassee, Seahaven Apartments will comprise 230 units across five buildings. Community amenities will include an outdoor pool, a clubhouse, a yoga studio, cabanas, grilling areas and a dog park.

Arris Holdings did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.