Orlando, Fla. (July 29, 2019) – Berkadia announces it has arranged a $19 million senior loan for the purpose of recapitalizing 174 units at Discovery Palms, a well-located 336-unit fractured condo community (162 units are privately owned) located in Orlando, Florida. Senior Managing Director Charles Foschini, Managing Director Chris Apone and Analyst Shannon Wilson of Berkadia’s Miami office arranged financing on behalf of ownership, Discovery Palms Owner, LLC. The property is 98% occupied.
Guggenheim Commercial Real Estate Finance provided the fixed-rate loan, with a five-year term and two years interest only.“ESG Kullen has added significant value to the asset since acquiring the community in August 2017 through a variety of capital improvements and exceptional management,” said Apone. “Meaningful increases in NOI and value made it an ideal opportunity for Guggenheim to provide a life insurance company based fixed rate loan to replace the previous floating rate bridge loan that was used to acquire the asset in 2017. The attractive fixed interest rate and flexible terms provided by Guggenheim will ensure a reliable source of cash flow to the asset.”
Located at 12806 Madison Pointe Circle, Discovery Palms is a gated community built in 2003 consisting of three-story garden-style apartments and two-story townhomes on 18.9 acres. One-, two- and three-bedroom units run from 934 square feet to 1,104 square feet. Community amenities include an expansive clubhouse, swimming pool, fitness center, tennis court, volleyball court, indoor basketball court and putting green.
Discovery Palms is a well-located asset along International Drive, a vibrant corridor close to several corporate campuses, resort properties and Orlando’s most popular tourism destinations. Approximately five miles north of Discovery Palms is SouthPark Center, a 2.9-million-square-foot office park boasting a roster of globally recognizable companies and 10,000 employees. The property is three miles south of Pointe Orlando, an open air retail entertainment complex featuring upscale and casual dining options as well as bars and nightclubs.