3650 REIT has originated a $76.5 million construction loan to finance the completion of a multifamily property in Dania Beach, Florida.
The 36-month loan, originated by 3650’s Bridge and Event Driven platform, was funded for sponsor Royal Palm Companies.
3650 believes this financing is a prime example of how sponsors like Florida-based real estate development firm Royal Palm are being driven to revisit their capital stacks to ensure certainty of execution in uncertain times.
“As a lender that does not employ leverage in our construction loan portfolio, we are positioned to provide debt capital in markets struggling for liquidity,” said 3650’s co-founder and managing partner, Jonathan Roth. “Our team has been through multiple real estate cycles, enabling us to continue to find strategic opportunities to provide financing for fundamentally strong projects despite an uncertain market.”
The nearly 300-unit project, Elevate Apartments, commenced construction in Q4 2021. It is approaching halfway finished and is expected to be completed in November 2023.
3650 REIT was able to provide a fully capitalized debt structure mid-construction, enabling the project’s completion – a process that Daniel Kodsi, president of Royal Palm Companies, called “a complicated endeavor,” but one that was well navigated by 3650 REIT.
Kodsi added that both firms prioritize long-standing business relationships and look forward to working more together in the future.
Royal Palm, which has a $3.5 billion portfolio across a range of mainly residential property types, partnered with developer Rafael Pecchio on the project.
The loan was arranged by Kevin O’Grady, managing director at Concord Summit Capital.
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