Fort Lauderdale Gets First Electra Capital Bridge Loan for Las Olas Apartments

Boutique lender Electra Capital has officially entered the bridge loan market.

The West Palm Beach-based company funded a $92 million bridge loan for Four West Las Olas, a 25-story luxury apartment building at 4 W. Las Olas Blvd. in downtown Fort Lauderdale.

This loan mark the lender’s entry into the bridge loan space, and it’s also the company’s largest loan  to date. Electra Capital partnered with Benefit Street Partners Realty Trust, a public nontraded mortgage real estate investment trust, to provide the senior mortgage of $76 million. Electra Capital held a $16 million mezzanine loan. Despite the size of the loan, the deal closed in 22 days.

Since the pandemic started, all of Electra Capital’s other loans have been less than $15 million. The loans include $12.2 million in preferred equity for the acquisition of the 330-unit Pines at Woodcreek Apartments and a $5.5 million preferred equity investment in Stonebridge at City Park Apartments, a 240-unit community, both in Houston; $4.1 million preferred equity investment in Element at University Park, a 192-unit apartment community in College Station, Texas; and $3.25 million preferred equity investment in The Carter, a 300-unit apartment community in Norcross, Georgia.

The developer of Four West Las Olas, Elevate One River LLC, secured the $92 million loan, and Cushman & Wakefield arranged the financing. Greenberg Traurig real estate shareholder Dan McCawley represented the developer.

The loan replaces an existing construction loan and will be used to complete leasing at the property, which is currently 58% full. The property has a mix of one-, two- and three-bedroom floor plans as well as penthouse units.

All of the units include high-end finishes, like quartz countertops, stainless steel appliances, full size washers and dryers, private balconies and views of the Atlantic Ocean and New River. The community will be equipped with a billiards lounge, rooftop pool, sky clubroom, 24-hour fitness center and a business center.

Demand for bridge loans is high in the current environment, and lenders are responding in kind in most cases. Taconic Capital Advisors, for example, recently secured a $190 million bridge loan through CIM Group for International Plaza I and II, a 780,000-square-foot double tower in North Dallas. The loan has a five-year term and a floating rate.

In addition, Kennedy Wilson and Fairfax Financial Holdings have launched a $2 billion initiative to provide bridge loans. The duo funded its first loan under the new platform in July, a $63 million loan for a multifamily community near Boulder, Colorado.

Like Four West Las Olas, the loan will be used to support initial leasing of the newly constructed project, which includes a mix of studios, one-bedroom, and two-bedroom multifamily units and ground-floor retail space.

Electra Capital focuses on short-term multifamily financing for middle-market real estate companies.