PENSACOLA, FL—Until this year, I didn't see much deal traction in Pensacola. But with land and acquisition prices rising in South Florida—and Central Florida—north Florida markets are seeing more action.

Aztec Group just secured a $9.1 million acquisition loan for Heritage Apartments in Pensacola, FL. Aztec director Charles Penan and senior managing director Howard Taft represented the borrower, an affiliate of Providence Investments in Birmingham, AL.

“This is the latest example of a high quality asset in a desirable residential market securing sound financing. Factors such as Heritage's ideal location and borrower track-record were key considerations by the lender in providing the mortgage,” says Penan. “This is the first of many financing transactions Aztec Group hopes to execute with both the borrower and lender in the years ahead.”

Built in 1970, Heritage Apartments is a 20-building, 194-unit garden apartment community. It sits on 16 acres of land at 6115 North Davis Highway.

Basis Investment Group, a New York-based conduit lender provided the financing. The terms secured included a 75% loan-to-cost ratio, 10-year term, five years of interest-only payments followed by a 30-year amortization and fixed interest rate below 4.50%. Taft says, “The terms of this acquisition financing secured speak to the strength of both the ownership and this multifamily asset in particular, as well as the stability of the multi-housing market in this region.”

Let's take a closer look at the region. A Walmart Neighborhood Market traded hands in Pensacola, FL in October. The price for the 42,296-square-foot retail asset was $4.1 million, representing a record low cap rate. The Shoppes at Paradise Isle, a 171,837-square-foot retail power center in Destin, FL—which is near Pensacola—sold in October. Stoltz Real Estate Partners' fifth US diversified fund acquired the retail asset for $32.8 million free and clear of existing debt.

“The sale of the Shoppes at Paradise Isle is another example of how investors are going to secondary markets and buying best-in-class centers to find more yield since pricing in the primary markets has gotten so aggressive,” HFF senior managing director Brad Petersen tells GlobeSt.com. “The is the fifth shopping center transaction that HFF has closed in the Florida Panhandle so far in 2014, and we are about to bring another shopping center sale to market in Pensacola in the next 10 days.”

It's no coincidence that there's a revitalization plan underway in Pensacola. The City of Pensacola has selected CBRE to implement a revitalization plan that includes marketing vacant or underutilized properties around its Community Maritime Park, the Port of Pensacola and the Pensacola International Airport, GlobeSt.com's John Jordan reports.