Forum Capital Secures $66M Loan for Downtown Fort Lauderdale Multifamily

As population growth in Fort Lauderdale continues to stay steady, a 6.1% rise in employment is keeping vacancy tight. 

A resurgence of office users in the metro’s Class A segment has pushed for rent growth and demand for amenity-rich buildings. That’s according to a Q2 Fort Lauderdale Multifamily Market Report by Marcus & Millichap.

The growth has led to investments, in Fort Lauderdale which is seeing an 87% uptick compared to 2021, with an increase in both luxury and Class B/C closings.

One company to add more stock to the market is a Denver-based real estate investment and asset management firm that has closed on a $66 million Class A, multifamily building in Fort Lauderdale.

Forum Capital Advisors LLC, secured the loan with Bank OZK, headquartered in Arkansas, for senior and subordinated debt financing to support the development of Flagler Station which will have 252 units. Each unit will average 757 square feet and will be located within walking distance of Flagler Village, in Fort Lauderdale.

As community-based amenities features are coveted among residential new tenants, Flagler Station will adhere to the trend with features such as a resort-style pool and outdoor kitchen, artificial turf dog park, and 2,087 square feet of ground-floor retail space.

Ross MacDonald, senior director with Forum Investment Group, says Forum is excited to partner with Bank OZK for the construction debt.

“We are excited to continue our growth in the Florida market and look forward to future opportunities with this strong vertically integrated sponsor,” said MacDonald.

The building is expected to be completed in 2024.

In the future, the employment gaps between current employment levels and figures before the pandemic may indicate future momentum for lower-tier assets, the multifamily report says.  With an increase in tourism to South Florida, hospitality recovery could push the vacancy in the meteor’s Class C stock to record tightness.