ORLANDO, FL – Berkadia secured a $20.82 million bridge loan on behalf of ESG Kullen, a real estate investment firm that focuses on repositioning fractured condos, for the acquisition of 145 units at Discovery Palms, a condominium community located in the Far South/Lake Buena Vista submarket of Orlando, Florida. The property is located at 12806 Madison Pointe Circle.
Berkadia South Florida Managing Director Christopher Apone, along with Senior Managing Director Charles Foschini, arranged the three-year, floating rate loan through a New York based debt fund at an aggressive interest rate and structure, with extension options and future funding for additional unit purchases and capital expenditures.
“This was a very unique transaction given that less than 50{244a6a310f13a6e4049f44755c85cf25c1286d462e33859b453f9c65e4f9fbbb} of the collateral was being acquired at the time of purchase,” said Christopher Apone. “The majority of non-recourse lenders require at least 50{244a6a310f13a6e4049f44755c85cf25c1286d462e33859b453f9c65e4f9fbbb} of the community in order to maintain full HOA control. Ultimately, we were able to secure a lender that was comfortable with the strength and experience of the borrower, their business plan, and the asset’s exceptional location on International Drive”.
“Having worked with this specific debt fund lender in the past, we knew their process and reliability for a smooth closing,” added Charles Foschini. “They were able to provide a very unique funding structure that allows the borrower to acquire additional units in the community, improve common areas and unit interiors, and provide a clear path to owning over 50{244a6a310f13a6e4049f44755c85cf25c1286d462e33859b453f9c65e4f9fbbb} of the collateral.”
Built in 2003, Discovery Palms is a condominium community ideally situated on International Drive. The community is exceptionally located between major attractions and employers such as Disney World, Sea World, and Aquatica, offering a wide variety of shopping, dining, and entertainment options. The community also has close proximity to additional major employers such as Lockheed Martin and The Florida Mall.
About Berkadia: Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com.