South Florida Multifamily Projects Secure $67M in HUD Loans
New York City-based commercial real estate financing firm Hunt Real Estate Capital provided both loans. Both loans will amortize over 40 years and include two years of interest only.
MIAMI—Two South Florida multifamily projects have secured two HUD 221 (d)(4) New Construction Loans totaling $67 million to help finance their development.
New York City-based commercial real estate financing firm Hunt Real Estate Capital provided both loans. Both loans will amortize over 40 years and include two years of interest only.
Hunt Real Estate Capital provided a $42-million HUD 221 (d)(4) New Construction Loan to finance Boardwalk 280 Apartments, a new 280-unit multifamily development that will feature, a leasing office, community common area, and a mix of outdoor public courtyards and gathering spaces. The property will consist of seven, four-story apartment buildings with elevator access and is located two miles from American Dream Miami.
The borrower is Boardwalk 280, LLC and the deal is backed by Gerardo Aguirre and Hector Garcia, seasoned commercial real estate investors with a combined 50 plus years of knowledge and experience in homebuilding and real estate sales, Hunt Real Estate Capital states. The borrowers are first time HUD borrowers that have owned the land for more than 10 years.
The second property— San Filippo Apartments—secured a $25-million HUD 221 (d)(4) New Construction Loan. San Filippo Apartments, a to-be-built multifamily community located on a 10-acre site in the City of Palm Bay within Brevard County, will feature 197 apartment units housed in three, four-story mid-rise buildings with a clubhouse and other amenities.
The borrower is Alliance Palm Bay Holdings, LLC, whose General Partner is Robert Cambó, of Alliance Companies. Alliance Companies was founded in 1994 and has developed more than 30 projects in 16 counties in the State of Florida. Hudson Real Estate Capital stat4es that the property is located in the booming Space Coast market where commercial space companies like SpaceX, founded by billionaire entrepreneur Elon Musk, and Blue Origin, started by Amazon.com Inc. Chairman Jeff Bezos, are setting up facilities.
The San Filippo Apartments project is classified as green/energy efficient housing, and will feature on-site management and maintenance, secured access entries, a resort-style swimming pool with cabanas, outdoor grilling areas, a fitness center and a dog park.
“Both loans were structured under the U.S. Housing and Urban Development’s (HUD) 221 (d)(4) loan program. This is a very attractive finance product for investors working to develop new multifamily options,” says Marc Suarez, director at Hunt Real Estate Capital. “These loans offer developers high leverage with a longer term—up to 40 years—and the flexibility they need to complete construction with permanent financing in place.”