ORLANDO—Fractured condos are still making their way through the clean up process. The latest is in Orlando.

Madison Capital Managementjust sold 203 residential condo units at Heritage Estates. The entire class A project has 272 units.

Madison has been invested in the fractured condo property as either a lender or direct owner since 2005. Over the years, the firm has acquired units and converted them to rentals.

Steve Kohn, Dave Karson, Chris Moyer, Sridhar Vankayala, and Suraj Ravi, all of Cushman & Wakefield's Equity, Debt & Structured Finance team, advised Madison.
Financial terms of the deal were not disclosed.

What we do know is that CushWake arranged $15.7 million of debt and arranged joint venture equity financing from CenterSquare Investment Management, the real estate investment boutique for BNY Mellon, for the undisclosed buyer. Key Bank offered the five-year financing package.

“Well located, solid communities like this now attract capital seeking much lower returns than they have for the past several years, despite the fractured nature of the condominium,” says Karson, executive managing director at CushWake. “The debt and equity markets have improved so dramatically over the past few years, even a year ago this type of capitalization would probably not have been possible."

Built in 2003, Heritage Estates sits between University of Central Florida and Orlando International Airport. That's in the East Orange/University of Central Florida submarket.

CushWake director Moyer says, “The property's location in the East Orange submarket, one of Orlando's most desirable areas, as well as Madison's strong track record with the property garnered the attention of several groups.”