JACKSONVILLE, FL—The capital is flowing for Florida commercial real estate—and CBRE has arranged significant back-to-back loans from one end of the state to the other this week. After helping Banyan Capital and Oaktree Management secure an $87 million bridge loan against Douglas Entrance Office Park, the firm has inked a $49.8 million loan for Harbour Group to acquire the Villages of Baymeadows.
Wells Fargo of New York originated the five-year loan. Terms include a 70% loan-to-value ratio, which is floating over Libor. CBRE vice chairman Charles Foschini explains how the loan was creatively structured to match the loan prepayment of a sister property that was acquired at the same time.
“By providing a floating rate, bank styled loan, Wells Fargo was able to provide a cost of capital that was far below our closest competitive bid and provide a loan that matched the prepayment date of the additional property, where a traditional loan was assumed,” Foschini says. “The cash-on-cash return based on this financing combined with Harbor Group's skilled approach to operations should make this asset an incredible acquisition of their fund.”
Located at 7915 Baymeadows Circle East in Jacksonville, FL, Baymeadows is a 1,084,096 million-square-foot multifamily complex built in 1972. In total, there are 904 multifamily units in the complex. Foschini led the transaction in collaboration with vice chairman Christian Lee of CBRE's Capital Markets Institutional Properties and first vice president Christopher Apone of CBRE's Debt & Structured Finance.
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