Berkadia Arranges $37.5MM in Acquisition Financing for Tavalo Tradition, A New Built-To-Rent Single Family Community in Port St. Lucie, Florida
Port St. Lucie, Fla. (September 14, 2023) – Berkadia announces it has arranged the acquisition financing for Tavalo Tradition, a 216-townhome build-to-rent community located on one of the last developable parcels of land within the Tradition Master Planned Community in Port St. Lucie, Florida. Managing Director Scott Wadler and Senior Director Matt Nihan secured the loan on behalf of the buyer, a vehicle managed by GTIS Partners.
A national bank provided the forward acquisition loan, which will be funded in draws as the builder, K. Hovnanian, delivers units through mid-2024.
“This was the lender’s first build-to-rent (BTR) transaction in the U.S.,” said Wadler, “and Berkadia was successful in getting them to underwrite the unique acquisition structure and accommodate the borrower’s phased takedown closing schedule.”
Added Nihan, “This was a rare opportunity for our client to secure a differentiated BTR product in an infill site within the highly sought after Tradition Master Planned Community which, until now, has only offered traditional multifamily rentals and for sale homes. We expect the BTR market to continue to flourish throughout the state of Florida due as the cost of homeownership continues to rise.”
Located in the heart of the Tradition MPC in Port St. Lucie, Tavalo Tradition offers two- and three-bed townhomes ranging from 1,387 square feet to 1,494 square feet. Individual units feature quartz countertops, 42-inch kitchen cabinets, vinyl plank flooring, stainless steel appliances, washer and dryers, LED lightning and rear-load two-car garages. Community amenities include pickleball courts, a fitness center, a swimming pool, a dog park, over 500 acres of lakes, and 300 acres of parks.
Tradition MPC is a highly successful, 2,500-acre master-planned community that is now getting new industrial and retail tenancy, and a critical mass of residential density. It consists of 7,000 residences,1.3 million square feet of office space, 675 square feet of retail and 300 hotel keys. Tavalo Tradition is minutes away from The Landing at Tradition shops, Cleveland Clinic, Tradition Town Center, a public TMI shuttle, an integrated school system, an amphitheater, PGA Village and Golf club, parks, lakes and entertainment.