KREF Lends $285M on Two Florida Multifamily Developments
In the first of two major Florida residential loans this week from the firm, KKR Real Estate Finance Trust has lent $135 million to refinance a multifamily rental development in West Palm Beach, Fla., the real estate finance company told Commercial Observer today.
The debt, a three-year floating-rate loan with two one-year extensions possible, will refresh prior financing on Portofino Place, a residential complex about three miles from the Atlantic Coast. The borrower, Atlanta-based Cortland, will pay an interest rate of Libor plus 2.9 percent on debt underwritten at a loan-to-value ratio of 73 percent. That ratio values Portofino Place at $185 million.
At the West Palm Beach development, one-bedroom apartments between 820 and 1,215 square feet go for around $1,300 per month, according to Cortland’s website for the property. Three-bedroom units that max out at 1,672 square feet are priced upwards of $1,700 per month. Residents have access to lighted tennis courts, three swimming pools and barbecue grills on the property’s landscaped grounds. Representatives from Cortland did not immediately return a voicemail.