CBRE Overcomes LURA Challenge in Multifamily Financing Deal

FORT LAUDERDALE, FL—San Tropez Apartments proved worthy of a $30.3 million loan. Advenir@San Tropez closed on an acquisition loan for the Pembroke Pines-based Tropez Apartments.

CBRE Capital Markets vice chairman Charles J. Foschini, vice chairman Christian R. Lee, and vice president Christopher Apone arranged the financing on behalf of the buyer through Freddie Mac. CBRE also represented the seller, Fairfield Residential Company, in the disposition, led by executive vice president Robert Given and associate Zachary Sackley.

“The biggest challenge in this deal was the LURA, the land use restriction agreement that ran with the property,” Foschini tells GlobeSt.com. “The borrower was very strong, the asset was very strong and Freddie Mac loved the deal. But the challenge was to get a loan commitment in the time frame that allowed the borrower to go hard and get the LURA approved. We were able to do that.”

Built in 1974 and renovated in 2006, San Tropez Apartments offers 480 units housed in 41 two-story buildings with a total of 379,200 rentable square feet. The 13-acre community is located in the northeast quadrant of Pines Boulevard and N. University Drive at 7840 NW 3rd Street. The multifamily asset was 95% occupied at closing.

Terms of the loan include a 10-year term with three years interest-only financing and a 75% loan-to-value ratio. Foschini called the asset an exceptional buy in a market that continues to see a strong recovery in rent growth but emphasized getting the deal done demanded diligence because of the LURA.

“We were very focused on the time line and achieving the needs of the borrow and we had to keep the agency, Freddie Mac, who is just deluged with transaction opportunities, extremely focused on this one and the importance of proper timing,” Foschini says. “That was achieved through the strength of our relationship with Freddie Mac, the quality of the asset and the strength of the borrower.”