Berkadia has secured a $22.5 million permanent loan for the purpose of refinancing 183 units at Discovery Palms, a 336-unit fractured condominium community located in the Far South/Lake Buena Vista submarket of Orlando, Florida.
The pet-friendly rental community features 336 units with one-, two-, and three-bedroom private entry apartment homes ranging in size from 569 square feet to nearly 1,700 square feet. Apartments feature private patios/balconies, in-unit washer and dryer, and lofts in select units. Community amenities include pickleball and basketball courts, a bark park, a resort-style pool, renovated tennis courts, a clubhouse with fitness center and business center, a playground, extra storage and garages for select units.
Managing Director Christopher Apone, Senior Managing Director Charles J. Foschini, Vice President-Originations Lourdes Carranza-Alvarez, and Associate Director Shannon Wilson of Berkadia Miami arranged the loan on behalf of the owner, ESG Kullen. The deal closed on September 6. Encore Finance provided the 5-year, fixed-rate, interest only loan at a competitive interest rate.
ESG Kullen first acquired the bulk 145 units at Discovery Palms in 2017 with $20.82 million in debt secured by Berkadia. The Sponsor has acquired an additional 38 condo units since then.
“Encore Finance was attracted to this opportunity given the Sponsor’s exceptional track record in owning and operating fractured condominium communities, along with the asset’s strategic location along International Drive,” said Apone.
Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, 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.
