Pensam Capital has landed a $32.1 million refinance for Promenade at Aloma, a 233-unit community outside Orlando, Fla. Berkadia arranged the Freddie Mac loan at a loan-to-value ratio of 65%. The full-term interest-only mortgage matures in 10 years.
Public records indicate the new financing package retires $24.5 million in prior Freddie Mac debt. CBRE Capital Markets had arranged the first, $21.9 million tranche in July 2015, adding an additional $2.6 million in early 2019. Those notes had been set to mature in mid-2025.
Promenade at Aloma, built in 1998, is located at 2785 Chaddsford Circle in Oviedo, roughly 10 miles northeast of downtown Orlando. The community’s units range from 908-square-foot one-bedroom floor plans to 1,268-square-foot three-bedroom apartments. The property’s amenity mix includes electric vehicle-charging stations, a business center, laundry facilities, and a variety of fitness options, from a swimming pool to tennis and volleyball courts.
Although the Orlando market suffered some dire setbacks in the early days of the pandemic, with both business and leisure travel cratering, the metro has made a significant comeback in the past year. A third-quarter report from Marcus & Millichap highlights how Orlando’s employment growth for last year was set to hit 70,000 jobs by year-end, propelling more inmigration in an already high-growth city.
Rent growth within Orlando has already accelerated, up 7.3% year-over-year through June last year, though certain submarkets have shown double-digit growth during the same time. Even as a large wave of multifamily developments came online, vacancy actually declined by 120 basis points during that same period. And as the economy continues its recovery, expect these dynamics to attract even more investment volume.