ORLANDO—PRG Victoria snapped up a lender-owned apartment complex in Orlando via Auction.com in August. The California investment real estate firm put in a winning bid of $47.8 million on the multifamily asset, which is next to Waterford Lakes Town Center in East Orlando.

Institutional Property Advisors (IPA) Capital Markets arranged $35.17 million in acquisition financing for the 15-building, 364-unit multifamily complex. IPA first vice president capital markets Jake Roberts, and Anita Paryani, IPA vice president capital markets, arranged the financing.

“The borrower wanted to stagger their debt maturities, which meant they needed to place 15-year debt on the asset,” says Roberts. “Very few of the most aggressive lenders have 15-year fixed-rate money, but IPA was still able to create a market for the 15-year product and push the top lenders to achieve the most aggressive rate with a 10-year interest-only component as well.”

The debt was structured with a 15-year term amortized over 30 years with a fixed interest rate of 4.78%. The loan to value is 76%. Since the asset was being purchased at auction, Roberts says it was imperative to secure prior commitment.

“We are seeing more and more borrowers, especially those who are long-term holders, push for 12- to 20-year fixed-rate loans,” says Paryani. “This is one of the few full-leverage loans to achieve 10 years of interest only.”

Orlando is a hot spot for multifamily. According to the Orlando Economic Development Commission (OEDC), the Orlando region added 44,000 jobs year-over-year with 2,100 jobs in May, driving the number of unemployed people down to 63,191. As unemployment falls, the group says Orlando is experiencing an increase in real-time labor demand as evidenced by new online job ads.

“Diversified job growth, higher consumer spending and record tourism are the big economic drivers,” Bill Moss, senior managing director at CBRE Orlando, tells GlobeSt.com. “There's also a new wave of Baby Boomers moving here after retirement and creating increased demand for shopping, dining and entertainment options.”