Westside Capital Group, a Miami-based real estate investment holding firm, has acquired The Residences at Veranda Park in the MetroWest neighborhood of Orlando, Fla., for $45 million. The mid-rise, mixed-use property includes 150 luxury apartments and more than 48,000 square feet of commercial space.
“We see Orlando as a strategic market for Westside despite the short-term economic shocks related to the COVID-19 pandemic, and we want to build a long-lasting relationship with the city and its residents,” said Westside founder and president Jakub Hejl. “The timing of this investment demonstrates Westside’s deeply rooted capital markets relationships and ability to deliver in an otherwise very challenging macroeconomic environment resulting from COVID-19.”
Built in 2008, the community sits on 2.56 acres featuring one-, two-, and three-bedroom units. Amenities include two fitness centers, two spas, common areas, including a clubhouse and a lobby, and 482 parking spots.
Westside plans to invest in common area and targeted capital improvements at the property. In addition, it assumes control of the Veranda Park Association within the MetroWest Master Association and has secured several future purchase rights and options to other development parcels in Veranda Park.
Berkadia secured a $31.5 million loan for the acquisition of The Residences at Veranda Park, with senior managing director Charles Foschini and managing director Christopher Apone of the Miami office sourcing the financing. Berkadia originated and Freddie Mac purchased the 10-year, fixed-rate loan with partial interest only at a 70% loan to value.
“While the buyer for this property was selected in late February, this is likely one of the first true ‘pandemic acquisitions’ as the borrower was required to adjust to Freddie Mac’s heightened debt-coverage ratio for the Orlando market and new requirement for a debt-service reserve,” said Foschini. “We worked with Freddie Mac to provide a full understanding of the property’s commercial income to ensure it was fully considered from a credit perspective. The deal faced numerous in-the-moment closing hurdles, all of which we successfully navigated by working closely with both Freddie Mac and Westside, ultimately achieving an exceptional loan with an extended interest-only period that accommodates the return goals of the buyer.”
This is Westside’s second investment in Orlando in the past 12 months. Last year, it acquired 128 acres of land and plans on completing a rezoning submission for the land bank with an intent to develop a mixed-use project with an estimated investment in excess of $1 billion.
