Fundamentals Pave Way for $47M Florida M-F Financing

Massive job loss and the struggling economy are finally catching up to the multi-family market, but with demand holding strong in certain pockets and government lenders still in full force, this sector of commercial real estate continues to attract financing with far more ease than the office and retail sectors.

Massive job loss and the struggling economy are finally catching up to the multi-family market, but with demand holding strong in certain pockets and government lenders still in full force, this sector of commercial real estate continues to attract financing with far more ease than the office and retail sectors. The 432-unit Village at Secret Lake apartment project in Kissimmee, Fla., fits the bill, having just reeled in a new $47.2 million construction/permanent loan originated by Love Funding. Sited in the Orlando/Disney vacation market, Village at Secret Lake (pictured) was originally planned as a condominium development. Now, plans call for 12 four-story structures containing 36 rental units, each. Love Funding provided the borrower, Village at Secret Lake L.P., with an FHA-insured non-recourse loan with a 40-year term and carrying a 6.25 percent fixed interest rate. The first quarter was rough one for the U.S. apartment market, with the nationwide vacancy rate having increased from 6.6 percent in the last quarter of 2008 to 7.2 percent, the highest rate in three years, according a report by real estate research firm REIS Inc. But while the slowdown in demand has slowed the flow of new projects, the need for more product is still relatively strong in certain areas. “On a macro level, there certainly are issues with multi-family, especially condo conversions, but the Kissimmee submarket is still doing well,” Carolyn Whatley, Love Funding first vice president & senior loan originator told, CPN. “There’s a need to serve residents at the rental level.”