(Read more on the debt and equity markets and the multifamily market .)
HALLANDALE, FL-Locally based SunVest Communities USA LLC has received a $35-million loan to refinance and acquire existing senior and mezzanine debt collateralized by more than 2,100 multifamily units with 12 condominium conversion developments in Florida, Arizona and Nevada. The financing was provided by Beverly Hills, CA-based Canyon Capital Realty Advisors.
This is the first loan Canyon has provided SunVest, which acquired the properties during 2005 and 2006, and renovated and converted the units from apartments to condominiums. Since completion of the condominium conversions, more than 50% of the units have been sold. The remaining units are currently being offered for sale or lease.
Canyon Capital Realty Advisors principal Jonathan Roth tells GlobeSt.com that the properties were originally acquired with a series of senior loans, mezzanine loans and equity provided by SunVest. With the current loan, a portion of the mezzanine loans was acquired and the debt was restructured. "The loans were restructured so that the borrower can further its business plans for the units," he says.
The properties were built between 1984 and 2003 as apartment developments with more than 4,700 units. The Florida properties are located in Orlando, Coral Springs, Miami and Tampa within the communities known as Eaglewood, Regency Gardens, Hawthorne Village, Harbor Point, Edgewater, Mediterranean Village and Enclave. The Arizona properties are located in Phoenix within the communities known as Mountain Canyon, Red Rox and Citi on Camelback. The Nevada properties are located in Las Vegas within the communities known as Traverse Point and Pinehurst.
Roth says the loan is consistent with Canyon's philosophy of investing in work force housing projects. "The units that are selling can be classified as work force housing," he says. "There is still a vibrant demand for this type of housing."
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