JLL Capital Markets announced that it has arranged refinancing in the aggregate amount of $37 million for a four-property, 460-unit multihousing portfolio located in Gainesville, Florida.
JLL worked on behalf of the borrower, American Commercial Realty (ACR), to secure the 10-year, fixed-rate Fannie Mae loans. The loans will be serviced by JLL Real Estate Capital, LLC, a Fannie Mae DUS lender. ACR acquired the portfolio in early 2020 and immediately instituted a renovation program that encompassed all four communities. This was followed by new marketing, tenanting and bottom-line appreciation.
“JLL assisted us in financing the property initially,” noted Rick Baer, ACR’s president, “We were pleased to turn back to them when it was time to refinance and realize much of the increased value.”
The portfolio consists of the 141-unit Hammocks by Butler, the 98-unit Hammocks off 6th, the 69-unit Hammocks on 34th and the 152-unit Hammocks on 20th. Upgraded units at the properties feature new floors, quartz countertops, stainless steel appliances, modern cabinetry and walk-in closets. The community amenities include swimming pools, outdoor grilling stations and a fitness center.
The four communities benefit from convenient highway accessibility, including I-75 and all major roads serving the Gainesville area. Three of the four properties are near Butler Plaza, the largest retail power center in Florida and among the largest in the southeast United States. Additionally, the University of Florida, Shands Medical Center and other employment hubs are within a five-minute drive from each of the properties in the portfolio.
The JLL Capital Markets Debt Advisory Team representing the borrower was led by Senior Managing Director Elliott Throne, Director Kenny Cutler and Analyst Karim Khaiboullin.
“ACR’s recent renovations, updated amenities and operational expertise added tremendous value to the properties,” stated Cutler. “These long-term loans allow ACR to harvest some of the value they have created at a very attractive cost of capital.”
Agency/GSE lending and loan servicing are performed by JLL Real Estate Capital, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated. Loans made or arranged in California are pursuant to a California Financing Law license.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients—whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.