MIAMI—Encore Capital Management is on a multifamily development rip. The company is building the $350 million mixed-use Plantation Walk, as well as Jacksonville Walk, Paramount Fort Lauderdale Beach, Paramount Miami, Margaritaville in Orlando and Encore at Reunion, a complex of several hundred high-end vacation homes four miles from Disney.
GlobeSt.com caught up with Art Falcone, co-founder and managing principal of Encore, to discuss the climate for construction lending, the challenges of mixed-use development and more in this exclusive interview.
GlobeSt.com: You have recently obtained financing for some of your large-scale projects, including Miami Worldcenter and Plantation Walk. What is the climate for construction lending and appetite from different kinds of lenders these days?
In short, lender appetite is great, especially in South Florida. To date, we've secured all the financing we need for Miami Worldcenter and continue to see strong enthusiasm.
Multifamily lending is particularly strong, especially if the project is in the right location, and the same goes for retail if the project is 50 to 60% pre-leased. Getting condo financing today is challenging, but in almost every other sector, we are seeing multiple quotes from multiple lenders.
GlobeSt.com: Plantation is seeing a wave of development, led by your $350 million Plantation Walk mixed-use project. Why did your group identify Plantation as a city ripe for large-scale development?
Because Plantation is truly in central Broward County. It's easily accessible from the ports, airports, tourist attractions and major highways. The number of universities in the area continue to grow and the number of residents puts a pressure on demand for amenities. Plantation also has the second-largest office market in the county.
GlobeSt.com: What are the biggest changes today in how large mixed-use developments are being conceived and planned?
Because mixed-use projects are relatively new in the United States and have only become prevalent in the past 5-to-8 years, the planning revolves around what's new and exciting. We're currently focused on making sure our projects have all the different components of a live, work, play environment, and an important aspect to that is having a strong employment presence.
The biggest change in the actual composition of a mixed-use development would be on the retail side: big-box retailers aren't expanding like they used to, and our focus has shifted to specialty retailers, restaurants and entertainment—all things that we call “Internet resilient.”
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